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5 CLOSED 
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SAN FRANCISCO 
PUBLIC LIBRARY 

REFERENCE 
BOOK 

\(// (u he taken /iiiiii the l.ihmr\ 



SAN FRANCISCO PUBLIC LIBRARY 



3 1223 05718 3346 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/2minutes1999sanf 



NOTE: 



The "Finance Committee" was renamed the "Budget 
Committee" on January 20, 1993. 

The name reverted to "Finance Committee" on January 29, 

1997. 

The name was changed to "Finance and Labor Committee" 
on January 27, 1999. 



3 1223 05718 3346 




A A? 



City and County of San Francisco 

Meeting^Agenda 

Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Nervsom 
Clerk: Joni Blanchard 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, January 06, 1999 



1:00 PM 



City Hall, Room 263 



Regular Meeting 



REGULAR AGENDA 



DEC 2 4 1998 






981963 [Lease Agreement, Port - Richard Stein/City Parking Company) 

Resolution approving lease agreement with Richard Stein d.b.a. City Parking Company and the City 
and County of San Francisco operating by and through the San Francisco Port Commission to 
operate a surface parking lot at Seawall Lot 330, Embarcadero and Bryant. (Port) 

1 1/18/98, RECEIVED AND ASSIGNED to Finance Committee. 



982037 |Grant - Statej 

Resolution authorizing the Director of Public Works to expend up to $1,274,279 from the State of 
California for roadway work on City streets in accordance with State-Local Transportation 
Partnership Program (9th Cycle) waiving indirect costs. (Department of Public Works) 

12/3/98, RECEIVED AND ASSIGNED to Finance Committee. 



982049 [U.IN. Plaza Farmers' Market Permit) Supervisor Kaufman 

Resolution amending the revocable permit for the Farmers' Market at United Nations Plaza by 
authorizing an increase in flower vendors at the market and removing limitations on the size of stalls 
for such vendors; making technical corrections to nonsubstantive permit terms. 

12/7/98, RECEIVED AND ASSIGNED to Finance Committee 



982063 [Tax Collector's Office Management Audit) Supervisor Kaufman 

Hearing to consider the follow-up review of the 1995 Management Audit of the Tax Collectors' 
Office. 

12/7/98, RECEIVED AND ASSIGNED to Finance Committee. 

12/16/98, CONTINUED. Speakers: None. Continued to the January 6, 1999 meeting. 

981719 [Audit of Transient Occupancy Tax Payments! Supervisor Newsom 

Resolution urging the Tax Collector to conduct an audit of transient occupancy tax payments from 
certain single room occupancy hotels. 

10/13/98, RECEIVED AND ASSIGNED to Finance Committee 

12/16/98, CONTINUED. Speakers: None. Continued to the January 6, 1999 meeting 



7 45243 SFPL: ECONO JRS 
206 SFPL 11/22/00 79 



Finance Committee Meeting Agenda Wednesday, January 06, I9VV 



982098 (Broadway Parcels| Supervisors Feng. 

Bierman 

Resolution approving in principle ( 1 ) the San Francisco Police Department's purchase or lease of 
Block 165, Lot 21 (Broadway between Sansome Street and Battery Street) at fair market value for 
the construction of a police station to replace the current North Beach station, (2) the Mayor's Office 
of Housing's utilizing Block 141, Lot 1 1 (Broadway between Battery Street and Front Street) for the 
development of affordable housing consistent with Proposition A approved by the voters in 
November, 1997, including but not limited to the issuance of requests for qualifications and/or 
proposals for a developer to purchase or lease of the site at less than fair market value for the 
development of affordable housing; and (3) the Port of San Francisco's utilizing Block 140, Lot 8 
(Davis Street between Vallejo Street and Broadway) for commercial development consistent with the 
Port's Waterfront Plan, including but not limited to a jurisdictional transfer of such parcel to the Port 
and the Port's issuance of requests for qualifications and/or proposals for a developer to purchase or 
lease of the site at fair market value for such commercial development; each subject to the receipt of 
any required Board of Supervisors' approval of such transactions. 

12/14/98, RECEIVED AND ASSIGNED to Finance Committee 



982136 |Grant, Federal| Supervisor NCWMM 

Resolution authorizing the Executive Director, Department of Parking and Traffic, to retroactively 
apply for, accept and expend up to S3. 54 million in Federal grants for implementation of the first 
phase of a state-of-the-art Integrated Transportation Management System (IT MS), foregoing 
reimbursement of indirect costs. 

12/21/98, RECEIVED AND ASSIGNED to Economic Development, Transportation, and Technology 

Committee 

12/23/98, TRANSFERRED to Finance Committee 



LITIGATION 

This Committee of the Board of Supervisors may meet in closed session under the provisions of 
Government Code Section 54956.9 and San Francisco Administrative Code Section 6Z8 to confer 
with legal counsel concerning anticipated litigation related to the following proposed lease 
amendment This motion would be made on the basis that discussion in open session of this 
proposed legislation would prejudice the position of the City in this matter. 

981923 [Golden Gate Yacht Club Lease Amendment! 

Ordinance approving the First Amendment to the lease between the City and the Golden Gate Yacht 
Club to reduce the rental rate from 10 percent to 7.5 percent of the Club's monthly gross revenue and 
reducing the lease term from 40 to 30 years. (City Attorney) 

1 1/13/98, RECEIVED AND ASSIGNED to Finance Committee 

12/9/98, CONTINUED. Heard in Committee Continued to December 16, 1998 meeting (as a closed session 

item). Speakers: Harvey Rose, Budget Analyst, Joel Robinson, Acting Director, Recreation and Park 

Department - support. 

12/16/98, CONTINUED. Heard in Committee. Speakers in support: Mary Sancimino, Charles Stem; Paul 

Anderson; Doug Carroll; Les Goldner; Nancy Wesley; Michael Schnapp, Maggie McCall Speakers in 

opposition: Gib Dyer; Emenc Kalman, David Miller; Isabel Wade; Joan Girardot, Coalition for S.F. 

Neighborhoods; Ernestine Weiss. Continued to the January 6, 1999 meeting. 



Finance Committee Meeting Agenda Wednesday, January 06, 1999 



This Committee of the Board of Supervisors may find that it is in the best interest of the City not to 
disclose any information revealed in its closed session deliberations in the above item at this time 
and may move not to disclose any information at this time. 

ADJOURNMENT 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part 
of the official public record and shall be brought to the attention of the Board of Supervisors. Any 
written comments should be sent to Committee Clerk, Finance Committee, San Francisco Board of 
Supervisors, City Hall, 1 Dr. Carlton B. Goodlett Place, San Francisco, California 94102 by 5:00 
p.m. on the day prior to the hearing. Comments which cannot be delivered to the committee clerk 
by that time may be taken directly to the hearing at the location above. 

LEGISLATION UNDER THE 30-DAY RULE 

Rule 5. 40 provides that when an ordinance or resolution is introduced which would CREA TE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal tune limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions 

There are no items pending under the 30-day rule. 

Watch future agendas for matters. 



Finance Committee Meeting Agenda Hedne\da\, Januan Mt, /wv 



Disability Access 



Both the Committee Room (Room 410) and the Chamber (Room 404) are wheelchair accessible. The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Building Accessible MUNI lines serving this 

location are: #42 Downtown Loop, the #71 Haight/Nonega, the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assitive listening devices are available for use in the Meeting Room and the Board Chamber A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff. 

The following services are available on request 48 hours prior to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact \ 'loleta Mosuela at 
(415)554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909. 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products Please help the City to accommodate these individuals 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-485 1 



FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

City Hall 

1 Dr. Carlton B. Goodlett Place 

San Francisco, CA 94102-4689 

IMPORTANT HEARING NOTICE!!! 



If 

7 



CITY AND COUNTY 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



OF SAN FRANCISCO 



BOARD OF SUPERVISORS 



BUDGET ANALYST 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



December 31, 1998 
TO: , Finance Committee 

FROM: .Budget Analyst Recw*****.*** & r <**«*.-^ ^ 
SUBJECT: January 6, 1999 Finance Committee Meeting 



DOCUMENTS &8FT. 

JAN " 5 m 

SAN FRANCISCO 
PUBLIC LIBRARY 



Item 1 - File 98-1963 
Department: 

Item: 



Location: 



Purpose of 
Lease Agreement: 



Lessor: 
Lessee: 
No. of Sq. Ft.: 



San Francisco Port Commission (Port) 

Resolution approving a new lease between Richard Stein, 
d.b.a. City Parking Company, and the City and County of 
San Francisco, operating by and through the Port, to 
operate a surface (street level) parking lot at Seawall Lot 
330, located at Embarcadero and Bryant. 

Seawall Lot 330 located at Embarcadero and Bryant 
Streets. 



To provide space for the operation of an existing public 
surface parking lot with a capacity of 501 vehicles. 

City and County of San Francisco 

Richard Stein, d.b.a. City Parking Company 

The subject parcel consists of approximately 124,065 
square feet. 



Memo to Finance Committee 
January 6, 1999 



Lessor's Option to 
Expand: 



Rental Payment 
by Lessee to City: 



Increase in Base 
Rental Revenues: 



Under the provisions of the proposed lease, the Port may 
exercise the option to expand the parking operations to 
space south of the Ferry Building, which is five blocks 
from the proposed leased space, if such space becomes 
available. The additional space which may become 
available ranges from 50,000 to 100.000 square feet, 
which would accommodate between 200 and 400 
additional vehicles, according to the Port's estimates. 
The Port would expand parking operations in order to 
facilitate public parking for short-term needs, special 
events, and emergencies. 



The subject parcel would be leased at the rental rate of 
$47,096 per month (base rental rate) with annual CPI 
adjustments. The annual base rental payment by City 
Parking Company to the Port would be $565,152 per year 
(or $47,096 per month times 12 months). 

If the Port exercises its option under the lease to expand 
its parking operations to available space south of the 
Ferry Building, then under the terms of the lease the Port 
would receive 66% of lessee's annual gross parking 
revenue receipts at any such expansion sites. Mr. 
Lozovoy estimates that such expanded operations would 
yield between $21,000 and $42,000 in monthly parking 
revenues. Based on the percentage rent of 66% of gross 
receipts after City Parking Taxes, Mr. Lozovoy estimates 
that the Port would receive between $13,680 (or 66% of 
$21,000) and $27,720 (or 66% of $42,000) per month from 
parking operations at the expansion sites. 



Mr. Mark Lozovoy. Senior Property Manager of the Port, 
reports that currently the Port has a month-to-month 
lease with All Right Parking for the operation of the 
parking lot on Seawall Lot 330. 

The current base rental rate is $25,000 per month, which 
results in a current total annual base rental revenue of 
$300,000 per year ($25,000 per month times 12 months). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to Finance Committee 
January 6, 1999 



Term of Lease: 



Ri^ht of Renewal: 



As previously noted, under the proposed lease, the new 
base rental rate of S47.096 per month for lease of the 
subject parcel would result in a projected total annual 
base rental revenue of $565,152 per year ($47,096 per 
month times 12 months). Therefore, the proposed lease 
rental payments would result in an increase of S22.096 
per month or $265,152 per year, representing a 
percentage increase of 88.38%. 

Two years, commencing on the first day of the month 
immediately after the Board of Supervisors approves the 
proposed lease. The Port retains the right to terminate 
the lease upon 60 days written notice to the lessee. 

None. 



Insurance Provision: 



Description: 



Comment: 



City Parking Company would be required to maintain 
Garage Liability and Garage Keeper's Insurance with a 
limit of not less than $1,000,000, in addition to Workers 
Compensation, Comprehensive General Liability and 
Comprehensive Automobile Insurance. 

According to Mr. Lozovoy, 501 vehicles could park in the 
subject parking lot. 

The City has an existing agreement with ESPN, the 
television sports network, to permit ESPN vehicles and 
related equipment to park in 50,000 square feet of the 
subject parcel from June 1, 1999 to July 3, 1999 and from 
June 1, 2000 to July 3, 2000. During these weeks, ESPN 
is scheduled to air the X-Games, "outrageous and 
alternative" sports games, such as skateboarding, sky- 
surfing, street luge, and bicycle stunt riding in San 
Francisco. The City would credit the City Parking 
Company with the rental amount directly proportional to 
the square footage reduction of the subject parcel as a 
result of the ESPN X-Games' temporary parking use of 
the parking lot. 

On July 29, 1998, the Port issued an Invitation for Bids 
(IFB). Attachment 1 to this report provided by the Port 
includes the names of all publications in which the IFB 
was advertised and the dates of these advertisements. 
Attachment 2 to this report provided by the Port contains 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance Committee 
January 6, 1999 



a list of the 18 compames which responded to the IFB and 
the monthly rental bid amounts submitted by each 
company. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

4 



DEC 1? '93 12= 13PM PORT OF" S~ ZZZ 



f.i.acr^.eiiL i 



San Francisco Chronicle and Examine 
Asian Week 

The Oakland Tribune 

Philippine News 

San Francisco Business Times 

Sun-Reporter 

San Francisco El Latino Newspaper 

City Purchasing Department 

Contra Costa Times 



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Attachment 2 



Port of Sun Francisco 
Parking Lot Bids 

September 15. 1998 

PARCEL III 

Seawall Lot 330 

Minimum Bid: S25.000.00 



1 City Parking Company S47.096.00 

2 Imperial Parking, Inc. 37,500.00 

3 Park Bay Inc. 37,104.00 

4 GDA Holding, Inc. 36,668.00 

5 Central Parking System. Inc. 36.250.00 

6 Allright Cal, Inc. 36.201.00 

7 ABC Parking, Inc. 36,000.00 

8 Grefalco Co., Inc. 33,333.00 

9 US Parking, Inc. 32,101.00 

10 K.T. Park Corporation 31,915.00 

11 Car Park Management Corp. 31,715.00 

12 Parking Company of America, Management, LLC 30,000.00 

13 Ampco System Parking 26,011.00 

1 4 Parking Concepts, Inc. 25,0 1 1 .00 

15 Federal Auto Parks, Inc. no bid 

1 6 Optima Investment, Inc. /dba Bay Parking Co. no bid 

17 Pacific Park Management, Inc. no bid 

1 8 San Francisco Parking Incorporated no bid 



U ,v ndmin lm hijs 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Item 2 - File 98-2037 

Department: 

Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Description: 



Department of Public Works (DPW) 

Resolution authorizing the DPW to expend retroactively 
up to $1,274,279 from the State of California for roadway 
work on City streets in accordance with the State-Local 
Transportation Partnership Program (9 th cycle), and 
waiving indirect costs. 

SI. 274.279 

July 1, 1998 through June 30, 1999 (one year) 

State-Local Transportation Partnership Program, 
administered by the California Department of 
Transportation (CalTrans) 

The Board of Supervisors previously authorized the DPW 
to apply for and accept funds granted under the State- 
Local Transportation Partnership Program (Program) on 
a continuing basis over the ten-year life of the Program 
without seeking separate approval from the Board of 
Supervisors during each funding cycle to apply for and 
accept the funds. However, the expenditures of the funds 
still requires approval by the Board of Supervisors. The 
Program was created to fund transportation 
improvements throughout the State. The proposed grant 
funds would provide monies for the ninth year of the 
Program. 

Approval of the proposed resolution would retroactively 
authorize the DPW to expend $1,274,279 in State grant 
funding for contractual services associated with a total of 
eight concrete street reconstruction and street resurfacing 
projects covering 30 City streets. The total cost of these 
projects is $7,681,009, of which the proposed State grant 
monies would fund 16.59 percent, or $1,274,279. The 
required local match of 83.41 percent, or $6,406,730, 
would be provided b} r Proposition B Sales Tax revenues 
which were previously appropriated by the San Francisco 
Transportation Authority for road work. According to Mr. 
Joe Olvadia of the DPW, contracts for two of the subject 
eight projects, namely the South of Market Street District 

Board of Supervisors 
Budget Analyst 



Memo to Finance Committee 

Januarv 6, 1999 Finance Committee Meeting 



Track Removal and Pavement Renovation Project and the 
Fillmore Street Pavement Renovation and MUNI 
Underground Ductbank Project, total $1,949,422 and 
have already been awarded. Mr. Olvadia reports that 
contracts for the remaining six projects have not been 
awarded. 



Budget: 



Required Match: 



Attachment I, provided by the DPW, contains project 
locations and costs (including both State funds and local 
funds) for each of the eight projects to be partially funded 
by the proposed grant. Including the State grant funds of 
$1,274,279 and the local match funds of $6,406,730, the 
total cost of the eight projects is S7, 681, 009. 

$6,406,730 - The funding source for this required local 
match is previously appropriated Proposition B Sales Tax 
revenues. 



Indirect Costs: 



Comments: 



According to Mr. Olvadia, the State-Local Transportation 
Partnership Program' does not permit the inclusion of 
indirect costs in grant awards. 

1. Attachment II, provided by DPW, is a list of the 
contracts by project, totaling $1,949,422, which have 
already been awarded by DPW. 

2. Attachment III is the DPWs Summary of Grant 
Request Form. 

3. DPW has prepared a Disability Access Checklist, which 
is on file with the Clerk of the Board's Office. 



Recommendation: 



Approve the proposed resolution. 



Board of Supervisors 
Budget Analyst 



Attachment 



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DIC 17 '93 ii:e3PM CCSF , DRW, BOEI, PROJECT MANAGEMENT 



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Attachment II 



M3E PARTICIPATION OF SELECTED 31DDERS 



1091N Various Locations South of Market Street 
District Track Removal Pavement Renovation Phase 1 



S422.522 



Prime Contractor: 

Esquivel Grading & Paving, Inc.(MBE) 

Subcontractors; 
Cobra Trucking(MBE) 
A. Ruiz Construction (MBE) 
King C. Electric(MBE) 
J. Higgins Trucking (W3E) 



65.6% 



3.6% 
13.0% 

7.7% 
10.2% 



TOTAL MBE/WBE PARTICIPATION 



100.0% 



1459N Fillmore Street - Broadway to Eddy Streets 



51.526,900 



Prime Contractor 
Shaw Pipeline (LBE) 

Subcontractors; 
Russ Enterprises(WBE) 
Vickers Concrete(MBE) 
S&S& Roger JV(MBE) 
Esquivel Grading(MBE) 
J Higgins(WBE) 



62.34% 



6.65% 
3.30% 
3.30% 
23.00% 
1.60% 



TOTAL MBE/WBE PARTICIPATION 



37.80% 



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hLLacnment 11. 



Item No. "- Summary of Grant Request 

Grantor State of California. CaJtrans Division Bureau of Engineering 

Contact Person Michael Lim Secuon Project Management 

Address 1 1 1 Grand Avenue Contact Person Joe Ovariia 



Oakland. CA 94623-0660 Telephone (415) 558-4004 



Amount Requested S 1.274.279 Application Deadline N/A 

Term From 7/1/98 To 6/30/99 Notification Expected 



Health Commission Board of Supervisors: Finance Committee_ 

Full Board 



L Item Description: Request to expend a continuation 

grant in the amount of $ 1.274.279 from the period of 7/1/98 to 6/30/99 
to provide rehabilitation of roadwav projects 

EL Summary: 

This grant will partly fund construction for resurfacing and reconstruction of 30 streets under the 

State-Local Transportation Partnership Program Cvcle No 9. 



UL Outcomes/Objectives: 

Extends useful life of roadwav bv 1 vears 



IV. Effects of Reduction or Termination of These Funds: 
The City will do less paving projects 



V. Financial Information: 

Col. A Col. B Col. C Col. D Req. Approved 

Two Years Ago Past Year Ong Proposed Change Match bv 

Grant .Amount $1.038.069 S2.065.99? Sl.274.279 ~ 

Personnel 
Equipment 



•Contract Syc. S1.03S.069 S2.065.99? Sl.274.279 

Mat. &. Supp. 

Facilities/Space 

Other 

Indirect Costs 



\T Data Processing 



VEL Personnel 

F/T CSC 
P/TCSC 
Contractual 



Source(s) of non-grant funding for salaries of CSC employees working part-time on this grant: 
Sales Tax 

Will grant funded employees be retained after this grant terminates? If so. How? 
N/A (Grant money is used for contractual services) 



*VHL Contractual Services: Open Bid X Sole Source 

s:pm/ovadia/reports/slrpp/cycle9/sumgr9.doc 1 -i 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Item 3 - File 98-2049 



Departments: 



Item: 



Description: 



Department of Agriculture, Weights and Measures 
Department of Public Works (DP WO 
Department of Real Estate 

Resolution amending the Revocable Permit for the 
Farmer's Market at United Nations Plaza by authorizing 
an increase in flower vendors at the Farmer's Market and 
removing limitations on the size of stalls for such vendors 
and making technical changes to the Revocable Permit 
provisions. 

According to Ms. Ilene Dick of the City Attorney's Office, 
in accordance with Section 2.74 of the City's 
Administrative Code, the Board of Supervisors previously 
issued a Revocable Permit to the Heart of the City 
Farmer's Market, a non-profit organization, to operate the 
Farmer's Market at the United Nations Plaza. Ms. Dick 
advises that currently the Revocable Permit contains a 
provision that limits the number of flower vendors to 
three vendors which are allowed to operate at the 
Farmer's Market. The Heart of the City Farmer's Market 
now desires to increase the number of flower vendors, 
which are allowed to operate at the Farmer's Market, 
from three to four because the current public demand for 
the sale of flowers at the Market is greater than the 
current vendor supply of flowers at the Market, according 
to Mr. Karl Landes, Co-Manager of the Heart of the City's 
Farmer's Market. 



In addition, Ms. Dick advises that currently the Revocable 
Permit contains another provision that limits the size of 
stalls, which are occupied by flower vendors at the 
Farmer's Market, to 9 feet by 12 feet. According to Mr. 
Landes, the Heart of the City Farmer's Market desires to 
remove all limits on the size of stalls which are occupied 
by flower vendors in order to provide such vendors with 
additional space to sell flowers. 

In summary, approval of the proposed resolution would 
amend the Revocable Permit, issued by the City to the 
Heart of the City Farmer's Market, by authorizing an 
increase in the number of flower vendors by one from 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



12 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

three to four, and removing all size limitations on stalls 
which are occupied by those flower vendors at the 
Farmer's Market at the United Nations Plaza. 

Additionally, according to Ms. Dick, the proposed 
resolution would make technical, non-substantive 
changes to the Revocable Permit provisions, including (1) 
substituting the "Chief Administrative Officer" with the 
"City Administrator" to make the Revocable Permit 
consistent with the City's actual organizational structure 
and (2) modifying the Revocable Permit requirement that 
the permittee purchase "Commercial" General Liability 
insurance, rather than just General Liability insurance to 
operate the Farmer's Market. 

Comments: 1. According to Mr. Landes, currently the Heart of the 

City Farmer's Market charges a daily stall fee of SI 8.00 to 
each of the three flower vendors at the Farmer's Market. 
Mr. Landes reports that the Farmer's Market is open 
twice per week and as such, stall fees total $36.00 per 
week, or approximately $1,872 per year, for each flower 
vendor. If the proposed resolution is approved, 
approximately $1,872 in additional stall fee revenues 
would be realized by the Heart of the City Farmer's 
Market from one more flower vendor at the Farmer's 
Market. 

2. In accordance with the current provisions of the 
Revocable Permit, Section 5 states that the Department of 
Real Estate is to be paid $1 annually by the Heart of the 
City Farmer's Market for the Revocable Permit to operate 
the Farmer's Market at United Nations Plaza. However, 
according to Mr. Harry Quinn of the Real Estate 
Department, the Real Estate Department has never 
received the SI annual payments from the Heart of the 
City Farmer's Market for the existing Revocable Permit to 
operate the Farmer's Market at United Nations Plaza. 

3. In addition, Section 11 of the current Revocable Permit 
states that the Department of Public Works (DP\V) is to 
be paid in advance $150 per month, or $1,800 annually, 
by the Heart of the City Farmer's Market for DPWs 
services to remove vegetable and fruit particles ground 
into the bricks at the United Nations Plaza resulting from 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



the operations of the Farmers Market. However, 
according to Ms. Barbara Moy of DPW, the last payment 
of $1,800 was made in October of 1994 by the Heart of the 
City for DPWs cleanup services, which is more than four 
years ago. As shown in the Attachment, when making 
this October of 1994 paj r ment, the Heart of the City 
indicated that they had signed the Revocable Permit with 
the City on August 10, 1993, thanked the City for their 
patience and requested to continue to make payments 
once a year. Although DPW, as of the writing of this 
report, could not confirm the period for which the $1,800 
payment covered, it appears that the Heart of the City 
Farmer's Market payment was retroactive to cover the 
one-year period from the beginning of the permit in 
approximately September of 1993 through August of 
1994. Therefore, the Heart of the City Farmer's Market 
currently owes DPW approximately $7,950 for delinquent 
payments to cover the period from September of 1994 
through January of 1999. The current Revocable Permit 
does not contain any penalty or interest payment 
requirements on this $7,950 amount that is past due from 
the Heart of the City Farmer's Market. 

4. Section 12 of the current Revocable Permit also 
contains a provision that requires the Heart of the City 
Farmer's Market to retain a consultant each year to 
conduct a public safety audit of the operations of the 
Farmer's Market. If a copy of such an audit is not 
provided to the Department of Agriculture and Weights 
and Measures by March 31 of each year, then the City is 
responsible for performing such an audit and the Heart of 
the City Farmer's Market is required to reimburse the 
City in an amount not to exceed $500 for the audit costs. 
According to Mr. Sid Baker of the Department of 
Agriculture Weights and Measures, the Heart of the City 
has not provided a copy of the annual public safety audit 
of their operations to the Department nor paid the 
Department up to $500 per year for the City to conduct 
such an audit for at least the past two years. 

5. Mr. Mario Kashou of the City Attorney's Office reports 
that the Heart of the City Farmer's Market has a history 
of repeated violations on the existing Revocable Permit, 
including violations regarding the number of flower 

BOARD OF SUPERVISORS 

BUDGET ANALYST 
Ik 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



vendors at the Market and the size of the flower vendor 
stalls, which are the issues that would be addressed in 
the proposed resolution. Mr. Kashou reports that 
neighboring flower stores have complained numerous 
times about these violations. According to Mr. Kashou, 
rather than supporting approval of the proposed 
resolution at this time, the City Attorney's Office is 
currently working with the Department of Agriculture, 
Weights and Measures to identify measures that can be 
taken to correct these problems. 

6. Given that the Heart of the City Farmer's Market has 
not complied with the existing Revocable Permit by (1) 
never paying the $1 annual Revocable Permit fee due to 
the Real Estate Department, (2) not paying in advance 
the $150 monthly fee to DPW for cleaning services in 
United Nations Plaza since the Fall of 1994, which 
currently results in a past due amount of approximately 
$7,950, (3) not submitting the required audit nor paying 
the Department of Agriculture, Weights and Measures up 
to $500 per year to conduct such an audit for at least the 
past two years, and (4) repeated violations of the number 
of flower vendors and the size of the flower vendor stalls, 
which the City Attorney's Office is currently working with 
the Department of Agriculture, Weights and Measure to 
resolve, the Budget Analyst's Office does not recommend 
approval of the proposed resolution, which would 
authorize further enhancements to the Revocable Permit 
held by the Heart of the City Farmer's Market and result 
in additional revenue of approximately $1,872 per year to 
the Heart of the City Farmer's Market. 

7. In addition, the Budget Analyst's Office is concerned 
that the Heart of the City Farmer's Market violations of 
the existing Revocable Permit did not trigger action by 
those City Departments responsible for overseeing the 
provisions in the Permit. The Budget Analyst notes that 
the Real Estate Department, DPW and Department of 
Agriculture. Weights and Measures were not aware of 
many of the above noted violations to the Permit, until 
questioned by the Budget Analyst's Office. Furthermore, 
the existing Revocable Permit does not contain any 
penalty or interest payment requirements by the Heart of 
the City, to encourage on-time performance of the 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



15 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

provisions in the Permit. The Budget Analyst therefore 
recommends that (1) the affected City Departments (i.e., 
Real Estate Department, DPW and Department of 
Agriculture, weights and Measures) immediately notify 
the Heart of the City regarding their delinquent 
payments and audits due, (2) stronger oversight of this 
Permit be continued by these respective City 
Departments and (3) additional penalty and interest 
payment requirements be included in any future 
amendments to this Revocable Permit. 

Recommendations: Given the numerous violations of the existing Revocable 

Permit, as summarized in Comment 6 above, disapprove 
the proposed resolution. 

The affected City Departments (i.e., Real Estate 
Department, DPW and Department of Agriculture, 
weights and Measures) should also immediately notify the 
Heart of the City regarding their delinquent payments 
and audits due, (2) stronger oversight of the Heart of the 
City Farmer's Market Revocable Permit should be 
continued by these respective City Departments and (3) 
additional penalty and interest payment requirements 
should be included in any future amendments to this 
Revocable Permit. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

16 



Attachment 



HEART of the CITY 



1934 Board Members 

FARU£R REPRESENTATIVES 

Prr»«s«r 

Terry FaJrchlld 

11631 PeocJi 

Lrvinsston, O.A 85234 

i-20&-394-4«02 

Vise FtTKrioem 
si Hufiana 
— S4£<E_ti a 3u» r 140— . 
Merced. CA 95340 
1 -209-723-1 «56 

Treasurer 

Jotl/1 GATTDftc 

S41 Popur Avenue 
San Oruna CA 34056 
415-S7V5424 

John Pootetil 
16229 E. Copoeropoh 
Linden. CA 9S236 
1-20© -464-6977 

MnrtBarOe 

Molmo Creek Farms 
P O. Box 64 
Da»<Tpon, CA 9S01 7 
1-4Q&-4 57-21 69 

COMMUNrrr ftEPnESENTATTVES 

Secretary 

Carolyn Ommona 

Market Sireet Aasoomon 

S70 Mance: Stre«t. *456 

San Francisco. CA 041 02 

415-3*2.2500 

Ja»i nnms>! 

SJiAJt£ 

NortfVjrn CaJrksrma 
407S Latvtsdt Ori«e 
FbcrimonrJ. CA 94006 
1-510-222-2508 

Eleanor Beaton 

San Francisco Arts Commission 
25 Van Nc*s Avenua. *240 
-San Francasco. CA 9-41 02 
^»15-2S2-2Se6 

BobKatt 

Manrins Drugstore 
1091 Uartcsl S=rs«t 
San Francisco. CA 9*103 
<i&-*S1-7240 

STAFF 

Manager 
CDriaane Adams 

Co-UaAa^sr 

•Cart Landea 




San Fr*no*oo. CA Widj . pgjm P*„h &nxix* 

(415; 556-9433 

Pax ;*iS, SS6-90Z3 - Co»T¥Tiuiny Fetocnsive 



John Cribbs 

Director Public Works 

City Kail Roo:c 260 

5nn Francisco, CA. 94102 



RECEIVE. ! 
54 0CT2<t HK 9.2S 

DEFT. PUBLIC WORKS 
DIRECTOR'S 01 r "S 



October 20 , T 994 

\i~~-c 0HLY 

RECEIVED 



OCT 2 5 1594 




Dear John, 

As of 'mnist 10, 1993 the Heart of the City 
Firmerc Karket ->n0 the city of 3an Francisco signed 
a permit. In this permit the Heart of the City agrees 
to pay Department of Public Works One Hundred and 
Fifty Soilars ( 5150.00 I every month to remove 
vegetable nntl fruit particles ground into the bricks. | 

If It is ok with you, may we continue to zrraJcar a 
check once a year. If you have any rjuections plaase 
call 5511-4955 on Thursday between 1 Oara A. 1 2pir> or 
64.7-9"3Z $ every Tuesday or Fx?i.«l«y u«t»oeii ^JkOa i -r^>»n ; 

Thank you for your patience. 



-V 




Market Manager I 

Heart of the Citv 



Pasl-rt* Fax Note 7671 P 3 " 



!l32 



*K G> 



^SZ 



g3gj- 



SrY-foC 






Id Ufc£S:C0 3SST 62 "==0 



frBIcS£9STT> : "OS S'-CHd 



oVJ.-idO ricja : kOtq 



17 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Item 4 - File 98-2063 

Note: This item was continued b} r the Finance Committee at its meeting of 
December 16, 1998. 



Item: 



Description: 



Hearing to consider the Budget Analyst's follow-up 
review of the Budget Analyst's 1995 Management 
Audit of the Tax Collector's Office. 

In April of 1995, the Budget Analyst completed a 
Management Audit of the Tax Collector's Office, 
which included 11 findings and 81 recommendations. 
In November of 1997, the Board of Supervisors 
directed the Budget Analyst to conduct a follow-up 
performance review of the Tax Collector's Office to 
determine the progress and status of the 
implementation of the recommendations contained in 
the Budget Analyst's Management Audit Report of 
1995. The Board of Supervisors requested both the 
1995 Management Audit and the Follow-up Review- 
in order to assist the Tax Collector in his efforts to 
improve the efficiency and effectiveness of his Office. 

The Follow-up Review, dated December 1, 1998, 
which was recently issued to the Board of 
Supervisors, identifies each of the Budget Analyst's 
recommendations made in 1995 and discusses the 
Tax Collector's progress in implementing each of 
these recommendations. In addition, further 
recommendations to improve the efficiency of 
operations, improve internal controls, reduce costs 
and increase revenues are included. 

Our report found that the Tax Collector's Office has 
fully or partially implemented 54 of the 81 
recommendations made by the Budget Analyst in the 
1995 Management Audit Report and that the Tax 
Collector has made significant progress in solving 
the problems identified at that time. In fact, the 
number of registered businesses in San Francisco 
has increased from 57,885 in FY 1994-95 to 70,467 in 
FY 1997-98, an increase of 12,582 businesses, or 
approximately 22 percent. Business Payroll and 
Gross Receipts Taxes and Business Registration Fees 
have increased from $159,020,000 in FY" 1995-96 to 
$225,745,000 in FY* 1997-98, an increase of 
$66,725,000, or approximately 42 percent, since the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



audit was completed. While the Tax Collector and 
the Budget Analyst acknowledge that these 
percentage changes during these periods are related 
to San Francisco's economic growth, the Tax 
Collector also acknowledges that, although the 
specific amount cannot be separated. " a substantial 
percentage must be linked to improvements enacted 
in accordance with the 1995 Audit 
recommendations". 

This Follow-up Review also contains a written 
response from the Tax Collector's Office and from the 
Animal Care and Control Department, which 
addresses Section II. 2: Dog Licenses discussed in the 
report. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Item 5 - File 98-1719 

Note: This item was continued by the Finance Committee at its meeting of 
December 16, 1998. 



Department: 
Item: 



Description: 



Tax Collector 

Resolution urging the Tax Collector to conduct an audit of 
Transient Occupancy Tax (Hotel Tax) payments to the 
City from 240 San Francisco Single Room Occupancy 
(SRO) hotels with 50 or fewer units. 

According to Mr. Richard Sullivan, Tax Collector, Single 
Room Occupancy (SRO) hotels are composed of rooms that 
are single person occupancy only and rented to guests on 
a hourly, weekly or monthly basis. Mr. Sullivan states 
that all hotels in San Francisco are required to reimburse 
the City for the Hotel Tax charged on each hotel room at 
the daily rate of 14 percent for guests who stay at the 
hotel for less than 30 consecutive days. The exception to 
this requirement is hotel operators renting 
accommodations to guests at less than $30 per day or 
$100 per week. Mr. Sullivan states that payments from 
the Hotel Tax to the City are required to be remitted on a 
monthly basis. If such payments are not remitted within 
30 days of the scheduled monthly payment date, then a 
penalty of 20 percent of the delinquent payment and 
interest at 1 percent are imposed each month that the 
payments remain delinquent, in addition to the base 
Hotel Tax monies due. 

Mr. John Madden of the Controller's Office states that in 
FY 1998-99, Hotel Tax is projected to generate revenues, 
totaling $163,580,035, for the City. According to Mr. 
Sullivan, $160,036 of the total Hotel Tax of $163,580,035 
is generated from SRO hotels with 50 or fewer units. 



Mr. Sullivan reports that the internal controls pertaining 
to revenue collections by the operators at SRO hotels with 
50 or fewer units are sometimes inadequate, which, in 
turn, may lead to the underreporting of Hotel Taxes due 
to the City. 

Approval of the proposed resolution would urge the Tax 
Collector to conduct an audit for the approximately four- 
year period from October 1, 1994 to September 10, 199S of 
a representative sample of 48, or 20 percent, of the 240 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



20 



Memo to Finance Committee 

January 6. 1999 Finance Committee Meeting 



SRO hotels in the City with 50 or fewer units to 
determine whether or not those hotels have fully paid all 
Hotel Taxes which are due to the Citv. 



Comments: 



1. Mr. Sullivan reports that presently 47, or 19.6 percent, 
of the 240 SRO hotels owe the City $47,843 in delinquent 
Hotel Taxes plus $5,054 in penalties and $6,891 in 
interest charges for total delinquent charges of $59,788 
owed to the Citv. 



2. Mr. Sullivan advised the Budget Analyst that the 
subject audit would be conducted with existing staff. 
Based on an estimate of 768 to 864 hours to complete the 
proposed audit, the total estimated cost of the audit would 
range from $119,969 to $134,965, according to Mr. 
Sullivan, but as previously noted, the audit would be 
conducted with existing staff, within the Tax Collector's 
existing budget. 

3. The attached memo from Mr. Sullivan discusses 
potential revenue collections from the proposed subject 
audit. 



Recommendation: 



4. The Office of the Sponsor of the proposed legislation 
indicates that an Amendment of the Whole will be 
introduced at the Finance Committee meeting of January 
6, 1999 to expand the scope of the Tax Collector's audit to 
include a representative sample of all residential hotels 
within the City, instead of only single room occupancy 
residential hotels with 50 or fewer units. As of the writing 
of this report, Mr. Sullivan reports that the Tax 
Collector's Office is in the midst of their move to City 
Hall, and they are not able to (1) identify the amount of 
Hotel Taxes generated annually by residential hotels in 
the City, (2) the amount of such Hotel Taxes that are 
currently delinquent, and (3) the number of hours and 
estimated cost to conduct the requested audits. Therefore, 
Mr. Sullivan has requested that this resolution be 
continued for two weeks, in order to provide sufficient 
time for the Tax Collector to review the proposed 
amended resolution and to compile such data. 

Continue the proposed resolution for two weeks, as 
requested by the Tax Collector. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



21 



PEC-10-1993 11--37 SF BUSINESS TAX P.B2/02 

Attachment 



Out of 1 0% sampling, 29% is paying and 7] % noD-paying ( Non-paying because Hotel Operators 
claimed for Hotel Tax exemptions per Sec. 506, Article 7 of the SF. Hotel Tax Ordinance). 

Of total population of 10% sampling (24), only 29% is paying, the equivalent of 7 accounts (7/24=. 29) 
Hxtrapolated, out of 240 accounts, approximately 70 accounts arc paying. 

Given the above information, it is not easy 10 estimate the collection to be realized as a result of the audit 
because the proposed subject audit may come up to a zero audit or in other words, the audit may result 
in a findings that majority of the Hotel Operators is in complete compliance with the Hotel Tax 
Ordinance. 



22 TOTAL P. 02 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Item 6 - File 98-2098 



Departments: 



Item: 



Department of Public Works (DPW) 
Department of Real Estate (DRE) 
San Francisco Police Department (SFPD) 
Mayor's Office of Housing (MOH) 
Port of San Francisco (Port) 

Resolution approving in principle the following 
proposed uses of the "Broadway Parcels," formerly 
part of the right of way of the Embarcadero Freeway: 
(1) SFPD's purchase or lease of Block 165, Lot 21 
("Broadway Parcel 1") at fair market value for the 
construction of a police station to replace the current 
Central Station, (2) the MOH's use of Block 141, Lot 
2 ("Broadway Parcel 2") for the development of 
affordable housing consistent with Proposition A 
approved by voters in November, 1996, and (3) the 
Port's use of Block 140, Lot 8 ("Broadway Parcel 3") 
for commercial development consistent with the 
Port's Waterfront Plan. 



History of 
Subject Properties: 



In 1990, the Board of Supervisors approved a 
resolution endorsing the demolition of the 
Embarcadero Freeway, due to the severe damage 
caused by the 1989 Loma Prieta earthquake. The 
Broadway Parcels were formerly part of the right of 
way of the Embarcadero Freeway. 

In 1991, Senate Bill (SB) 181 was approved by the 
California Legislature, which authorized the transfer 
of the right of way of the Embarcadero Freeway from 
the State of California Department of Transportation 
(CalTrans) to the City and County of San Francisco 
at no capital cost to the City. The City acquired the 
Broadway Parcels on December 30, 1994. 
Jurisdiction of the Broadway Parcels resides 
currently in the DPW. 

According to Ms. Leslie Trutner of the City 
Attorney's Office, SB 181 further required that San 
Francisco use the right of way property or the 
proceeds from the sale of the right of way property to 
construct a system of local streets and ramps to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



23 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

provide motorists with accessibility comparable to 
that of the elevated Embarcadero Freeway. 
(Embarcadero Roadway Project). Thus, revenues 
collected by the City through the DPW as proceeds 
from such transfers must be used to fund the 
Embarcadero Roadway Project. 

Description of 

Subject Properties: Broadway Parcel 1, or Block 165, Lot 121, located at 
Broadway between Sansome Street and Battery 
Street, consists of 17,337 square feet. According to 
Mr. Harry Quinn of the DRE. the estimated fair 
market value (FMV) of Broadway Parcel 1 is $2.6 
million. 

Broadway Parcel 2, or Block 141, Lot 11, located at 
Broadway between Batten- Street and Front Street, 
consists of 30,940 square feet. According to Mr. 
Quinn, the estimated FMV of Broadway Parcel 2 is 
$4.5 million. 

Broadway Parcel 3, or Block 140, Lot 8, located at 
Davis Street, between Yallejo Street and Broadway, 
consists of 10,799 square feet. According to Mr. 
Quinn, the estimated FMV of Broadway Parcel 3 is 
$1.3 million. 

Current Leases at 

Subject 

Properties: According to Mr. Quinn, upon acquiring the subject 

properties from CalTrans, the City assumed the 
following leases, which existed and continue to exist 
on the subject properties: 

The City leases Broadway Parcel 1 to the 735 
Battery Street Association, a parking operator, for 
surface (street-level) parking lot operations at $3,500 
per month, and for an easement for egress at $2.08 
per month ($25 per year), or $42,025 per year 
($3,502.08 per month times 12 months). Consisting 
of 17,337 square feet, Broadway Parcel 1 is currently 
leased at an average of approximately $0.20 per 
square foot per month. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

Ik 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

The City leases Broadway Parcel 2 to Park Express, 
a parking operator, for parking lot operations at 
$11,500 per month and to PG&E for an electric 
transformer at $134.85 per month, or a total of 
$139,618.20 per year ($11,634.85 per month times 12 
months). Consisting of 30,940 square feet, Broadway 
Parcel 2 is leased at an average of approximately 
$0.38 per square foot per month. 

The City leases Broadway Parcel 3 to Park Express 
for parking lot operations at $6,800 per month, or 
$81,600 per year ($6,800 per month times 12 
months). Consisting of 10,799 square feet, Broadway 
Parcel 3 is leased at approximately $0.63 per square 
foot per month. 

According to Mr. Jesse Smith of the City Attorney's 
Office, the DPW has used all revenues from the 
above lease revenues for the Embarcadero Roadway 
Project. 

Proposed Uses of 

Subject Properties: Broadway Parcel 1 

Under the proposed resolution, according to Captain 
Timothy Hettrich of the SFPD, the SFPD would 
acquire jurisdiction over Broadway Parcel 1 by 
paying the DPW $2.6 million, which as noted above 
is the estimated FMV for Broadway Parcel 1, and 
would build a new police station (new Central 
Station) on the subject parcel. The SFPD currently 
operates its Central Station at 766 Vallejo, property 
which the SFPD owns and, according to Captain 
Hettrich, will sell to the Department of Parking and 
Traffic (DPT) for $2.6 million to cover the purchase 
price of Broadway Parcel 1. 

Captain Hettrich further estimated that the cost of 
building the new Central Station on the subject 
parcel would be between $5 million to $7 million. He 
anticipated that these costs would be paid for in part 
by General Fund monies and in part by proceeds 
from the sale of the San Francisco Police Academy 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



building on Amber Way. which he estimates would 
be sold at between $3 million and S5 million. 

Broadway Parcel 2 

Under the proposed resolution, according to Ms. 
Marcia Rosen of the MOH and Ms. Trutner. the 
MOH would obtain the property from the DPW 
through a jurisdictional transfer of the property. 
MOH would then sell or ground lease the property 
for the development of affordable housing consistent 
with Proposition A, approved by the voters in 
November of 1996, and the proceeds from such 
disposition would be used in accordance with SB 181, 
which requires such funds be used for the 
Embarcadero Roadway Project. 

Proposition A authorized the City to issue 
5100,000,000 of General Obligation bonds to finance 
both the development of housing affordable to low- 
income households in the City and County of San 
Francisco, and downpayment assistance to low and 
moderate income first-time homebuyers. In 
December of 1997, the Board of Supervisors 
approved regulations to implement Proposition A. 
authorizing the MOH to provide the proceeds from 
these bonds to fund the development of affordable 
housing. (See Comment 2). Attachment I is a 
memorandum from Ms. Rosen explaining why this 
transaction would be below the FI^PV of $4.5 million 
and that the estimated value would be $500,000. 

According to Ms. Trutner and Mr. Smith, the 
proposed use of Broadway Parcel 2 by the MOH at 
below FMV is permitted. Ms. Trutner and Mr. Smith 
reported that under well-settled principles of 
municipal law. the City may dispose of its real 
property at less than FMV where the Board of 
Supervisors finds that the property will be used for a 
"public purpose." such as affordable housing. Ms. 
Trutner stated that SB 181 does not mandate that 
the City dispose of the subject parcels at FMV. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Broadway Parcel 3 



Under the proposed resolution, according to Ms. 
Jennifer Sobol of the Port, the Port would enter into 
a ground lease with a developer at FMV rent to use 
Broadway Parcel 3, along with other Port-owned 
parcels, to develop and operate a hotel. Ms. Sobol 
stated that the DPW would transfer jurisdiction of 
the subject parcel to the Port. Pursuant to a 
Memorandum of Understanding (MOU), the DPW 
would receive a pro rata share of the hotel rental 
revenue. According to Ms. Sobol, the funds received 
by the DPW, which as shown in Attachment II are 
estimated to be approximately $200,000 annually, 
would be earmarked for the maintenance of the 
Embarcadero Roadway. Attachment II is a memo 
from Ms. Sobol explaining the details of the proposed 
use of Broadway Parcel 3, including the proposed 
number of guest rooms of the hotel. 

Comments: 1. According to Captain Hettrich, the SFPD's 

existing Central Station at 766 Vallejo consists of 
approximately 10,000 square feet, and the proposed 
new Central Station on the subject parcel would 
double the space available to approximately 20,000 
square feet for the operation of the SFPD in the 
North Beach district. 

2. In November of 1997, the Board of Supervisors 
adopted Resolution 97-97-56.1 which implemented 
Proposition A by requiring that any rental housing 
developed with Proposition A funds be affordable for 
a period of 50 years to low-income households 
earning no more than 60% of median income. 

3. Mr. Robert Carlson of the DPW confirmed that 
the proceeds from any sale of the Broadway Parcels 
would go into the City's Real Property Fund, and 
would be subject to appropriation by the Board of 
Supervisors for purposes restricted to funding the 
Embarcadero Roadway Project. Mr. Smith confirmed 
that the proceeds from the proposed transfers of the 
Broadway Parcels would be used for the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Embarcadero Roadway Project to the extent required 
under SB 181. 

4. Mr. Smith further noted that the proposed 
transactions for the Broadway Parcels would each 
involve a jurisdictional transfer requiring future 
approval by the Board of Supervisors. 

5. The Budget Analyst notes that the proposed 
resolution erroneously states that Proposition A was 
"approved by voters in November, 1997," but 
Proposition A was approved by voters in November, 
1996. 

6. According to Ms. Trutner, an Amendment of the 
Whole is being prepared and will be submitted at the 
January 6, 1999 Finance Committee Meeting. The 
amended resolution would propose findings related 
to the following: (1) DPW's use or need, if any. for 
the subject parcels, (2) priority given under State law 
to affordable housing developments in the disposition 
of real property owned by the City, and (3) the 
impact, if any, of the California Environmental 
Quality Act (CEQA) on the proposed transfers. The 
amended resolution would also correct any clerical 
errors in the proposed resolution, as noted above in 
Comment 5. 

Recommendation: Approval of the proposed resolution, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



12/30/98 WED 16:39 FAX 415 252 3140 



MAYOR - HOI SING 



l£!002 



Attachment 1 



MAYOR'S OFFICE OF HOUSING 

CITY AND COUNTY OF SAN FRANCISCO 




WILLIE LEWIS BROWN, JR. 

MAYOR 

MARCIA ROSEN 

DIRECTOR 



December 30, 1998 
MEMORANDUM 

TO: Harvey Rose, Budget Analyst 

FROM: Marcia Rosen, Director ~V\ArC^ 

Mayor's Office of Housing 

RE: Broadway Parcel #2 



This memo responds to your inquiry - conveyed by phone message from Saralynn Aug in your 
office - regarding the transfer of Broadway Parcel #2 to the Mayor's Office of Housing for the 
purpose of affordable housing development. Your questions and the answers are as follows: 

1 . Why is the transfer proposed to be for below fair market value? 

A below market rate transfer or land value write-down of publicly-owned surplus land is a 
well-established means for local jurisdictions to accomplish their affordable housing goals. 
Land acquisition cost is one of the major components of a development budget Reducing 
the land cost also reduces the amount of debt the project must carry. This in turn reduces the 
rental income the project must produce and makes possible rents that are accessible to 
households with lower incomes. 

This form of subsidy is particularly useful in meeting the goal of geographically distributing 
affordable housing throughout the city and avoiding its concentration in traditionally low 
income neighborhoods. This involves attempting to integrate affordable housing into areas 
where land values (and the cost of housing generally) are particularly high, such as the 
subject location, where the proximity to downtown, the Embarcadero, North Beach, and 
Chinatown result in extraordinarily high values, even for San Francisco. If full market rate is 
paid for land in such areas, the resultant development costs are generally so high relative to 
the citywide average as to make affordable rental housing development infcasible. 

2. What is the proposed value for the transfer? 
S500,000. 

If our office can provide you with any future information, please call me at 252-3 1 80. 



MR:KD 



25 Van Ness Avenue, Suite 600 • San Francisco, CA 94102 • (415) 252-3177 FAX (415) 252-3140 

TDD (415) 252-3107 



29 



DEC-29-1998 1? : 03 K.e;./LJ = 

Attachment 2 



PORT OF SAN FRANCISCO 
MEMORANDUM 

TO: Harvey Rose DATE: December 29, 199B 

Budget Analyst 

FROM: Jennifer Sobol 

Development Project Coordinator 

SUBJECT: Resolution Approving in Principle the Disposition of the Broadway Parcels 

This memo gives a bnef summary of the hotel development opportunrty for which the 
Port is presently soliciting qualifications and proposals (*RFQ/P"). The Executive 
Summary from the RFQ/P is enclosed for your information. (Attachment 1) The hotel 
project affects Block 140, Lot 8, referred to in the Resolution as "Broadway Parcel 3." 

The Port is seeking a developer to design, finance, construct and operate a fulll-service 
first-class hotel to be located on parcels owned by the Port and on Broadway Parcel 3, 
which is owned by the City and shown as Parcel C on the enclosed Site Plan. 
(Attachment 2) The developer will propose the number of rooms and other amenities 
to be included in the hotel. The Port requires certain mmimums: at least 300 guest 
rooms, one or more eating establishments, 10,000 square feet of banquet/meeting 
space and approximately three times the code-required number of parking spaces. 
Qualifications are due January 25, 1999; proposals will be sought from the most- 
qualified developers, and a selection hopefully will be made by June 1999 

Broadway Parcel 3 presently is leased to a parking operator who pays approximately 
$6,800.00 per month in rent to the City (S81, 600.00 annually). These funds go to DPW. 
Per an agreement reached between DPW and the Port (Attachment 3), Broadway 
Parcel 3 will be transferred to Port jurisdiction so that the Port can then ground lease the 
parcel to the developer, along with the Port parcels. 

The Port is requiring minimum monthly base rent plus percentage rents from gross 
receipts on rooms revenue, food and beverage revenues, parking, and other related 
services. The developer is to propose base and percentage rents. Based on projections 
made by the Port's consultants, in the first year of stabilized operations (year 3), the Port 
expects to receive approximately $2 million in annual rental revenue from the hotel (See 
Attachment 4). The City (DPW) will receive a portion of this revenue, based upon the 
percentage of square footage of Broadway Parcel 3 (approximately 10,795 sf) to the 
overall square footage of the land area used for the hotel site (approximately 108,292 
sf). Based thereon, the revenue to the City is estimated as follows' 

$2, 000, 000 x 10,795 = approximately $200,000.00 annually. 
108,292 

The funds received by DPW would be earmarked for maintenance of the Embarcadero 
Roadway. 

If you have further questions, please call me at 274-0548. 



30 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Item 7 - File 98-2136 

Department: 

Item: 



Amount: 
Grant Period: 
Sources: 



Department of Parking and Traffic (DPT) 

Resolution authorizing the Executive Director of the DPT 
to retroactively apply for, accept and expend S3. 54 million 
in Federal grants for implementation of the first phase of 
a state-of-the-art Integrated Transportation Management 
System (ITMS), and foregoing reimbursement of indirect 
costs as such reimbursement is not permitted under 
Federal guidelines. 

$3,540,000 

March 1, 1999 through June 30, 2001 (28 months). 

DPT has secured grant funds from three different Federal 
Programs in the amounts listed below: 

Amount Federal Program 

$2,000,000 1-280 Interstate Transfer Concept Program 
1,500,000 Intelligent Transportation System 

Integration Program of Transportation 
Equity Act 21 
40.000 Surface Transportation Program 

$3,540,000 Total 



Required Match: 



Description: 



$733,000, or approximately 20.7 percent of the grant 
total, in the form of in-kind services to be provided by 
DPT (see Comment 2 ). 

The proposed resolution would authorize DPT to 
retroactively apply for, accept and expend $3.54 million in 
Federal grant funds for implementation of the first phase 
of a state-of-the-art Integrated Transportation 
Management System (ITMS). According to DPT, the 
ITMS will use "intelligent transportation technology" to 
provide significant, measurable improvements to enhance 
traffic safety, improve transit operations, reduce 
congestion and travel time, improve responsiveness to 
special events and/or incidents, keep travelers informed of 
traffic conditions, and enhance operations and 
communication among DPT, CalTrans, the Department of 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



31 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Public Transportation (Muni) and other transit and 
transportation agencies. 

The ITMS will include: 

• Automated traffic volume and congestion monitoring 
(with video detection and street sensors for signal 
controls) to implement traffic signal timing in response 
to rapidly changing traffic conditions caused by traffic 
accidents, street closures, sporting events, parades and 
natural disasters; 

• Remote monitoring (closed circuit television cameras) 
to provide real-time data collection at key intersections 
and on critical street segments in order to utilize 
electronic message signs strategically installed along 
major arterials to inform motorists of real-time traffic 
conditions and recommended alternative routes; 

• Variable message signs, internet displays and direct 
links to the media to disseminate information 
concerning street closures, roadway construction, 
parking availability, and alternate routes; 

• Automated traffic signal operations that would detect 
signal malfunctions and notify maintenance personnel 
of such malfunction, thereby decreasing repair 
response time and improving traffic safety and flow. 



DPT estimates that implementation of the ITMS project 
on a City-wide basis would cost $43,000,000. The balance 
of the estimated City-wide cost of 539,460,000 
($43,000,000 less $3,540,000) would be required to install 
equipment with capabilities similar to the ITMS 
description detailed above throughout the City. DPT 
further reports that each phase of implementation would 
be within a specified geographical area resulting in 
operational benefits on its completion. This first phase of 
the ITMS implementation would be in the South of 
Market Street area most affected by: a) the new Giants 
Ballpark, b) the expansion of Moscone Convention Center, 
c) the 1-280 freeway, and d) the 1-80 on and off ramps 
retrofit project. Portions of the first phase are targeted for 
completion by April of 2000, coinciding with the opening 
date of the Giants Ballpark. The completion date for all of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



32 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

Phase I of the ITMS project is anticipated to be June 30, 
2001. 

Budget: A summary budget for the subject grant funds S3. 54 

million is as follows: 

Equipment Purchase and Installation S2, 406, 000 

Contingency - 15% 360,900 

Consultant Services - Engineering and Design 450,100 
ITMS Program Evaluation 

(conducted by Federal Government) 323.000 

Total 53,540,000 

The Attachment to this report is a detailed budget for the 
subject grant monies to fund Phase 1 of ITMS 
implementation. The DPT is unable to provide details 
concerning the actual consultants, contractors and 
equipment vendors that will be used for the project at this 
time. Under Federal regulations, such consultants, 
contractors and vendors must be chosen through a 
competitive selection process. 

Indirect Costs: The proposed resolution would forego reimbursement of 

indirect costs because such reimbursement is not 
permitted under Federal Grant guidelines. 

Comments: 1. According to Ms. Cheryl Liu, Associate Transportation 

Engineer, Phase 1 of the ITMS implementation will be 
completed in 28 months, beginning March 1, 1999 and 
ending June 30, 2001. 

2. As noted previously, the required match for the $3.54 
million in Federal Grant Funds is $733,000. The required 
match will be provided through the commitment of in- 
kind services by DPT to the ITMS project. According to 
Ms. Julia Dawson, Senior Administrative Analyst, DPT 
will provide such services during the current, 199S-99 
Fiscal Year using existing budget resources and a 
supplemental appropriation will not be required. Ms. 
Dawson adds that the DPT believes that additional 
resources, over and above current staffing and 
expenditure levels, may be required during Fiscal Years 
1999-2000 and 2000-2001. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Memo to Finance Commi 

January 6, 1999 Finance Committee Meeting 



According to Mr. Matthew Hymel. Director of Finance for 
the Mayor's Office, further evaluation will be required in 
order to determine the need for any additional budget 
resources for DPT to provide needed in-kind services to 
the ITMS project during Fiscal Years 1999-2000 and 
2000-2001. This evaluation will be conducted by the 
Mayor's Office during the formulation and development of 
the Mayor's recommended budget for Fiscal Year 1999- 
2000. 

3. A feasibility study funded by the Metropolitan 
Transportation Commission (MTC) concluded that full 
implementation of the ITMS could result in the following 
benefits: a) 10-25% reductions in non-recurring traffic 
delays due to unanticipated incidents, b) a 10% decrease 
in traffic fatalities, c) 8-15% reductions in travel time; d) 
12-35% reductions in vehicle stops, and e) 13-33% 
reductions in vehicle emissions. 

4. DPT plans to implement the ITMS City-wide as 
funding becomes available. DPT will actively seek funding 
from Federal sources for the City-wide implementation. 
As noted above, upon completion of Phase 1, the ITMS 
will be operational and will function independently in the 
South of Market area regardless of whether additional 
phases are implemented. 

5. Because the proposed ITMS grant project could involve 
the commitment of additional budget resources in Fiscal 
Years 1999-2000 and 2000-2001, and such additional 
costs have not been specified, the Budget Analyst believes 
that the proposed ITMS grant project is a policy matter 
for the Board of Supervisors. 



Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



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36 



Memo to Finance Committee 

January 6 ? 1999 Finance Committee Meeting 

Item 8 - File 98-1923 

Note: This item was continued by the Finance Committee at its meeting of 
December 16, 1998. The City Attorney's Office has requested that this item 
be heard in closed session. 



Departments: 
Item: 



Location: 

Purpose of 
Lease Agreement: 



Lessor: 
Lessee: 

No. of Square Feet: 



Term of Lease: 



Rental Payment 
from Lessee to City: 



Recreation and Park Department (RPD) 

Resolution approving the first amendment to the lease 
between the City of San Francisco and the Golden Gate 
Yacht Club (Club) (a) to reduce the rental rate from 10% 
to 7.5% of gross monthly revenues, representing a 
reduction of 25% payable by the Golden Gate Yacht Club 
to the City, and (b) to reduce the lease term from 40 j^ears 
to 30 \ r ears. 

Marina Yacht Harbor 



To operate a recreational boating and racing oriented 
yacht club. 

City and County of San Francisco 

Golden Gate Yacht Club (the Golden Gate Yacht Club) 

Under the terms of the original lease agreement, the 
subject property consists of a total land and water area of 
31,256 square feet. 

The current term of the lease is 40 years, commencing 
June 1, 1992 and terminating on May 31, 2032. The 
proposed lease amendment would reduce the current term 
of the lease by 10 years, from 40 years to 30 years, 
expiring on May 31, 2022. 

Under the original lease, the rental rate is 10% of gross 
receipts. The proposed rental rate is 7.5% of gross 
receipts. The minimum rent of $1,500 per month remains 
the same. 

Attachment 1 provided by Mr. Ernie Prindle of the 
Recreation and Park Department contains the annual 
gross revenues and annual rental payments due from the 
Club to the City over the past five years under the rental 
rate of 10% and the projected annual gross revenues and 
projected rental payments due from the Club to the City 
under the proposed rental rate of 7.5% for the remaining 
23 years of the proposed reduced lease term. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



37 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Fair Rental Rate 
Adjustment: 



Description: 



Based on the data contained in Attachment 1, Mr. Prindle 
projects, that over the remaining 23 years of the proposed 
reduced lease term, the City would receive $734,841 less 
from the Club at the proposed rental rate of 7.5% than the 
City would receive at the existing rental rate of 10%. 



Under the proposed amended lease, the rent would be 
adjusted to fair market rent on June 1, 2002 and on June 
1, 2012. Mr. Prindle, states that he is unable to project 
the fair market rentals at those times and whether such 
adjustments to the fair market rentals will result in 
higher or lower rental rates. 

The Golden Gate Yacht Club is a nonprofit operation 
which, under the terms of the original lease provides a 
"clubhouse with amenities for family type participation," 
"a meeting room and dining facilities," for the "use of 
marine oriented organizations," "yacht club functions," 
and "banquet and event functions." In April of 1992, the 
Board of Supervisors adopted Ordinance No. 25-92 which 
approved a lease between the Golden Gate Yacht Club 
and the City and County of San Francisco for the purpose 
of operating a yacht club. 

On April 10, 1997, the City gave a notice of default to the 
Golden Gate Yacht Club regarding certain alleged 
breaches by the Golden Gate Yacht Club of its obligation 
under the Lease to pay percentage rent, install and 
maintain bookkeeping and accounting methods, maintain 
adequate books and records and provide auditors reports 
to the City. The Golden Gate Yacht Club disputes all of 
these allegations. 

The Club now reports that the 10% rental rate, to which 
it had previously agreed in the existing lease, was too 
high. According to Mr. Prindle, the Golden Gate Yacht 
Club presently owes the City approximately S200.000 in 
back rent. 

To settle these claims, Mr. Ernie Prindle of the RPD 
advises that the proposed lease amendment would 
authorize a reduction in the rental rate from 10% to 7.5% 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



38 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 

of monthly gross revenue, but would also reduce the term 
of the lease by ten years, from 40 years to 30 years. 

Comments: 1. Attachment 2 is a memo provided b} r Mr. Prindle 

pertaining to the justification for reducing the proposed 
monthly rent payable to the City by 25% from 10% to 
7.5%. Notwithstanding this justification, Mr. Prindle has 
estimated a loss of $734,841 in rental revenues to the City 
due to this proposed rental rate reduction. 

2. As previously noted, the proposed legislation, in 
addition to reducing the rent payable to the City, would 
also reduce the terms of the lease by 10 years. However, 
in response to inquiries made by the Budget Analyst, Mr. 
Prindle could not state that a new lease would not be 
made with the Golden Gate Yacht Club at the end of the 
proposed reduced term of 30 years. 

3. An independent appraisal dated August 28, 1997 
was performed to determine the fair market rental rate. 
Comparables used were deli and port restaurants, with 
percentage rent ranging from 7% to 11%. As restaurants, 
these comparables do not address the other aspects of the 
Club beyond the Club's restaurant. The appraiser 
concluded that a market rental rate of 9% of gross 
receipts would be reasonable. Subsequent to the first 
appraisal, the Department of Real Estate requested 
another review of the matter, in response to which a 
supplemental addendum letter from the same appraiser 
dated November 25, 1997 was subsequently presented to 
the Recreation and Park Department, finding that the 
proposed rental rate of 7.5% would be reasonable, 
assuming a food and beverage operation that is subject to 
the Yacht Club's membership rules and regulations. (See 
Comment 5). 

4. Mr. Tony Delucchi, Director of Real Estate stated 
that the appraiser was retained by the Department of 
Real Estate on behalf of the Recreation and Park 
Department. However, Mr. Delucchi states that he was 
not involved in the appraisal which served as the basis for 
the proposed rental rate reduction. 

5. Attachment 3 is a copy of the addendum letter from 
the appraiser which responds to the "subsequent request" 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance Committee 

January 6, 1999 Finance Committee Meeting 



Recommendation: 



by the Real Estate Department to determine "whether or 
not a rent of 7.5% of food and beverage sales was 
reasonable, assuming an operation that is impacted by 
sales generated by membership only and no public 
access." 

6. At the December 16, 1998 Finance Committee 
Meeting, the Finance Committee requested that 
Supervisor Newsom work to negotiate a new deal between 
the City and the Golden Gate Yacht Club. Supervisor 
Newsom's Office has requested that this resolution be 
continued for one week to January 13. 1999 to allow 
additional time to negotiate such a deal. 

Continue the proposed resolution for one week to January 
13, 1999, as requested. 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 




BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Shset9 



ichment 1 



Year 



Annual 

Gross 

Revenue 



Rent at 10 
Percent 



Rent at 7.5 

Percent 



Difference 



1933-94 S B40.691 $ 54,059 S 63,052 S 21,017 



1995 

1996 
1997 
199S 



598,744 
623,851 
638,036 
654,804 



59,874 
62,385 
53,804 
55.480 



44.9-05 

45,790 
47,853 
49,850 



1999-2022 S 25.027.507 S 2,602,751 S 1.952,053 



14,959 
15,597 
15,551 
16,620 
650,688 



Total $29,393,543 $2,939,354 $2,204,523 $ 734,541 



Notes/ Assumptions 

"Gross revenue includes deduction for SBA loan payment 

"1993 Gross Revenue is for period March through December. 

"1998 Gross Revenue includes 10 months actual and straight line projection for two months 

*1 999-2022 Gross Revenue assumes 4 percent increase per year based upon 1995 Grass Revenue 

as base. 2022 includes Gross Revenue only for 5 months. 



Page 1 



TOTAL P.G1 



41 



City and County of San Francisco Recreation and Park Department 




ta cr^e: 



December 10, 199B 

TO: Budget AnaJyst f) 

FROM: Emie Phndle 

RE: Golden Gate Yacht Harbor 



M 



You have asked for a justrfication for the proposed reduction in rent for the Goiden 
Gate Yacht Club from 10 to 7.5 percent to of gross receipts. This reduction is based 
on an independent appraisal of the fair market rent for the property in question 
conducted through the Real Estate Department. To offset this reduction in rent for 
the first ten years of the lease, the Club has agreed that the rent would be adjusted 
to the fair market rent in the years 2002 and 2012. This modification will insure that 
the City receives a fair rent for the entire term of the lease. More-over, the lease term 
would be reduced from 40 to 30 years, which is favorable to the City. 

Please let me know rf you need any further informatjon on this issue. 



McLaren Lodga, Golden Gate Park fAXl tnatMJam 

501 Stem/an Street p7~_ £12 " 1 - 20 * 9 

San Francisco, CA 94117-183* ^^ ( * 15) 531 ' Z7M 



42 



DEC-03-199S 



5= RrC Pf&K 






£ft/vsr & Assocm res, wc 

Hospital/ty and tea/ £na« Consulting and ^ppnttal 5erWces 



Attachment 3 
Page - ! or 3"~ 



Joveraber2S. 1997 



Ms. Suzanne Melleo, MAI 

HVS International 

1 1 6 New Montgomery Street, Suhe 620 

Sin Francisco. CA 941Q5 

Dear Ms. Mellen: 

Ernst Si Associates is pleased to present this nf fcWirinrn letter, summarizing our major conclusions, 
findings and recommendations in connection with an analysis of comparable rents for the first 
floor of the Golden Gate Yacht Club, located in San Francisco, California. This addendum letter 
is subject to all of the major assumptions and/or limiting conditions set forth in our executive letter 
dated August 28. 1997. 

Raekp-nnnd mnd Ohftr*?™ 

The City and County of San Francisco, a Municipal Corporation, acting by and through the 
Recreation and Park Commission (Lessor) leases the Golden Gate Yacht Club dining and banquet 
facilities to the Golden Gate Yacht Club (Lessee). The facilities are comprised of a two-story 
building which is located on the San Francisco Marina, near the St. Francis Yacht Club. The City 
of San Francisco would like to know what the market rent would be if they leased back the 
downstairs portion of the building from the yacht club operator. 

Originally, we confirmed with Mr. Harry Quinn that the City was interested in determining a flat 
rent, on a per square foot basis, not impacted by the constraints of a yacht club operation (i.e., 
sales generated by membership only and no public access). The findings of our original work was 
documented in a separate report. 

This addendum letter responds to a subsequent request by Mr. Qninn to determine, if 
possible, what other yacht club food and beverage lease terms were and whether or not a 
rent of 7.5% of food and beverage sales was reasonable, assnmiug an operation that Is 
impacted by salts generated by membership only and no public access. 

SatpfcttCHaifc 

We attempted to identify comparable facilities for purposes of our analysis. Our research included 
telephone calls to the following: 

Affiliated With: 

Sunn t. f/ruc. SOU* Ekihy t Aiioc 



43 



Page 2 of 3 
HVS International 
November 25, 1997 



Katherine McDennott, Dept. of Real Estate, Port of Long Beach 

Jim Rice, Dept of Marine Leasing, Port of Seattle 

GaiJ Wasfl, Soperintendenl of Leasing, Port of Long Beach 

Yvonne Clark, Dept of Beaches and Harbors, Los Angeles County 

David Sandoval, City of San Diego Port District 

Dennis White, Port of Oakland 

Maria Smite, Property Management Department. Port of Los Angeles (San 

Pedro) 

Manager, Corinthian Yacht Chib, Tibtrron 

Jim Dickson, Treasurer, Loch Lomond Yacht Club, San Rafael 

Manager, Inverness Yacht Club 

California Yacht Clubs, Southern California 

The majority of the yacht cinbs contacted would not respond to our request or indiraird that they 
were unwilling to share data with us. The TU fftgw of the Corinthian Yacht Club indicated that 
they do pay a base minimum rent, plus a percentage rent, but was unwilling to divulge tbc actual 
amount. He indicated that to his knowledge, they were the only club in Marin County thai leased 
the food and beverage facilities. 

Mr. Rice at the Port of Stank indicated that based on his experience, a rent that equated to about 
6% of food and beverage sales was equitable. 

Katherine McDennott mentioned that the North Harbor Restaurant, Port of Long Beach, which 
closed last month, catered to longshoremen and businessmen. This restaurant was not a tourist- 
oriented restaurant and did not have a *Vater theme". They charged the tenant 8% of food and 
beverage sales. 

Gail Wasil, Port of Long Beach, indicated that all recent restaurant deals which involved city- 
owned buildings called for rent in the range of 6.5 % to 8% of food and beverage sales, depending 
on specific lease criteria. The base rent was calculated on 7.5% of 75% of projected revenues. 

During our original study, we concluded that rents were based primarily on a return on gross sales, 
and secondarily on a per square foot basis. The comparables indicate a fairly consistent range of 
rents, presented as a percentage of gross sales, ranging from 7% to 11%. Rents for full-service 
restaurants most frequently fall within a range of 6-8% of total sales. Limited-service restaurants 
and retail operations fall within a range of 9% to 1 1% of sales. We determined that the most 
reasonable way to estimate rent would be to first estimate sales; calculate rent as a percentage of 
gross and translate that into a rent per square foot 

During our original study, considering all factors, and assuming that the tenant was not 
impacted by the yacht dob membership roles (le., access to the public) we concluded that the 
market rent for the Golden Gate Yacht Club's./irjry7oor would be reasonably stated at about 9% of 
gross sales or S 1 .70 per square foot whichever is greater. 

Based on the input is presented above, we believe that rent based on 7 5% of food and beverage 
sales a reasonable, assuming a food and beverage operation that is subject to the yacht club's 
membership, rules and regulations. 



Ernst & Associates, Inc. 



A A 



DEC-03-1933 16:34 



SF REC PPPX- 



410 552 S21S P.25VBS 



HVS Intrrnirtinoal 
November 25, 1997 



Attachment 3 
Page 3 of 3 



Should we receive any further data or input from those contacted, subsequent to presentation of 
tbia letter, we will advise you immediately. 

It has been our pleasure working with you on this project We are available to discuss this 
addcp tfcfl m letter in detail upon your request. ;;!_ ... , 

Respectfully submitted, 




Susan L. Ernst, 1SHC 
President 



Ernst A Associates, Inc. 



10.25 



7% 




City and County of £an Francisco 

Meeting, Agenda 

^Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



City Hall 

1 Dr. Carlton B. 
Goodlett Place 

San Francisco, CA 
94102-4689 



Wednesday, January 13, 1999 



1:00 PM 
Regular Meeting 



Room 263 



CONSENT AGENDA 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be 
acted upon by a single roll call vote of the Committee. There will be no separate discussion of these 
items unless a member of the Committee so requests, in which event the matter shall be removed from 
the Consent Agenda and considered as a separate item. 



982116 [Emergency Repair, Clay Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally 
inadequate sewers in Clay Street from Stockton to Powell Streets and Joice Street from Sacramento 
to Clay Streets - $255,415. (Public Utilities Commission) 

12/17/98, RECEIVED AND ASSIGNED to Finance Committee. 



982117 [Emergency Repair, Brannan Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to repair the structurally 
inadequate sewers m Brannan Street from Collin P. Kelly Jr. Street to Second Street - 5104,687. 
(Public Utilities Commission) 

12/17/98, RECEIVED AND ASSIGNED to Finance Committee. 



982118 [Emergency Repair, Naglee Avenue Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally 
inadequate sewers in Naglee Avenue from Alemany Boulevard to Cayuga Avenue - S69.659. (Public 
Utilities Commission) . . / /. /,. 

12/1 7/98, RECEIVED AND ASSIGNED to Finance Committee. r'-f ti f ) ^ ^> > S 

DOCUMENTS DEPT. 



REGULAR AGENDA 



JAN 1 1 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 

982115 [Airport Concession Lease] 

Resolution approving Boarding Areas "B" and "C" Bookstores Lease between Host International, 
Inc. and the City and County of San Francisco, acting by and through its Airport Commission. 
(Airport Commission) 

12/17/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed as 1:30 PM on 1/7/99 



Finance Committee 



Meeting Agenda 



Wednesday. January 13, 1999 



982130 [Government Funding] 



Supervisors Katz, Leno, 
Newsom 



Ordinance appropriating 5979,000, Telecommunication and Information Services, from the General 
Fund-designated for one-time expenditures to finance the creation of the City's Year 2000 team 
project which serves as the centralized planning and assistance group; for the general City 
responsibility for fiscal year 1998. 

(Fiscal impact.) 

12/21/98, RECEIVED AND ASSIGNED to Finance Committee. 



990004 [Reserved Funds, DTIS] 

Hearing to consider release of reserved funds, Department of Telecommunications and Information 
Services, (General Fund Reserve, Ordinance 195-98), in the amount of S499,000 to fund the 
implementation of Fiber Optic Network and the development of an Internet On-Line Processing Plan. 
(Department of Telecommunications and Information Services) 

12/31/98, RECEIVED AND ASSIGNED to Finance Committee. 



981719 [Audit of Transient Occupancy Tax Payments) Supervisor Newsom 

Resolution urging the Tax Collector to conduct an audit of transient occupancy tax payments from 
certain single room occupancy hotels. (Mayor) 

10/13/98, RECEIVED AND ASSIGNED to Finance Committee. 

12/16/98. CONTINUED. Speakers: None. Continued to the January 6, 1999 meeting. 

1/6/99, CONTINUED. Speakers: None. Consideration connnued to the next regularly scheduled Finance 

Committee Meeting. 



ADJOURNMENT 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part of 
the official public record and shall be brought to the attention of the Board ofSupen-isors. Any 
written comments should be sent to Committee Clerk. Finance Committee. San Francisco Board of 
Supervisors. 1 Dr. Carlton B. Goodlett Place. Room 244. San Francisco. California 94102 by 5:00 
p.m. on the day prior to the hearing. Comments which cannot be delivered to the committee clerk by 
that time may be taken directly to the hearing at the location above. 



LEGISLATION UNDER THE 30-DAY RULE 

Rule 5 .40 provides that when an ordinance or resolution is introduced which would CREATE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal time limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions 



City and County of San Francisco 



Printed at 1:30 PM on 1/7/99 



Finance Committee Meeting Agenda Wednesday, January 13, 1999 

There are no items now pending in the Committee that fall under the 30-day Rule. 
Watch future agendas for matters. 



City and County of San Francisco 3 Printed at 1:30 Hi on 1/7/99 



Disability Access 



Both the Committee Room (Room 263) and the Chamber (Room 250) are wheelchair accessible. The closest accessible BART Station is 
Civic Center, three blocks from City Hall Accessible MUNI lines serving this location are: #42 Downtown Loop, the #71 
Haight/Noriega, the F line to Market and Van Ness and the METRO stations at Van Ness and Market and at Civic Center. For more 
information about MUNI accessible services, call 923-6142 

There is accessible parking in the vicinity of City Hall adjacent to Davies Hall and the War Memorial Complex 

Assitive listening devices are available for use in the Meeting Room and the Board Chamber. A device can be borrowed prior to or dunng 
a meeting. Borrower identification is required and must be held by Room 244 staff 

The following services are available on request 48 hours prior to the meeting or hearing 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at (415) 554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909. 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple chemical sensitivity or 
related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products 
Please help the City to accommodate these individuals. 

Government's duty is to serve the public, reaching its decisions in full view of the public Commissions, boards, councils and other 
agencies of the City and County exist to conduct the people's business. The Sunshine Ordinance assures that deliberations are conducted 
before the people and that City operations are open to the people's review. For more information on your rights under the Sunshine 
Ordinance (Chapter 67 of the San Francisco Administrative Code) or to report a violation of the ordinance, contact the Sunshine 
Ordinance Task Force at 554-485 1 . 



Finance Committee 

S.F. Board of Supervisors 

City Hall, 1 Dr. Carlton B. Goodlett Place, 

Room 244 

San Francisco, CA 94102-4689 

IMPORTANT HEARING NOTICE!!! 



Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



0.25 
1 



CITY AND COUNTY 




OF SAN FRANCISCO 



.BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



January 8, 1999 
TO: ^Finance Committee 

FROM: ^Budget Analyst |?« om . lt ,U^.^ ■&' ,«***.. 
SUBJECT: January 13, 1999 Finance Committee Meeting 



Item 1- File 98-2116 
Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



DOCUMENTS DEPT. 

SAN FRANCISCO 
PUBLIC LIBRARY 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 



Resolution authorizing expenditure of funds for the 
emergency work to replace the structurally inadequate 
sewer on Clay Street from Stockton Street to Powell 
Street, and on Joice Street from Sacramento Street to 
Clay Street. 

$255,415 

FY1998-99 PUC Repair and Replacement Fund 

The PUC advises that on July 17, 1998, the sewer located 
on Clay Street from Stockton Street to Powell Street, and 
on Joice Street from Sacramento Street to Clay Street 
collapsed, and immediate repairs were required in order 
to protect the health, welfare, and property of the citizens 
of San Francisco. PUC declared an emergency on July 20, 
1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to Troy's 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

Contracting/Trinet Construction Inc., a Joint Venture, in 
the amount of $207,765. 

Budget: The total estimated project cost is $255,415, including 

$207,765 in actual construction costs (or $9,375 less than 
the quotation amount; see Comment No. 2) and $47,650 
for DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $207,765 

DPW Bureau of Engineering 27,650 

DPW Bureau of Construction Management 20.000 

Total $255,415 

Attachment I provided by the DPW provides further 
budget details to support this $207,765 budget. 
Attachment II provided by the DPW details the DPW 
Bureau of Engineering and Bureau of Construction 
Management costs. 

Comments: 1. The Invitations for Proposals were faxed to 17 

contractors on July 24, 1998. Two quotations were 
received by PUC from qualified contractors on July 28, 
1998. PUC reports that Troy's Contracting/Trinet 
Construction Inc., a Joint Venture, submitted the lowest 
quotation and was awarded the contract in the amount of 
$217,140. The following table lists the who contractors 
submitted quotations and the amounts of these 
quotations: 

Contractor Quotation 

Troy's Contracting/Trinet Construction Inc., JV $217,140 
McNamara & Smallman Company. Inc. $219,670 

2. PUC reports that although the contract was awarded in 
the amount of $217,140, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $207,765 or $9,375 less than the 
contract amount of $217,140. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to Finance Committee 

January 13. 1999 Finance Committee Meeting 



3. PUC reports that the repair work of the damaged 
sewer began on August 3, 1998 and was completed on 
September 1. 1998. 

4. Mr. Iqbal Dhapa of the DPW advises that due to 

various delays in receiving expenditure documentation 
from the contractor the PUC is requesting approval of this 
resolution over four months after the construction work 
was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



ciaN 



Attachment 1 
Page 1 of 3 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau 



AGENDA NO. 



MEETING DATE December 15, 1998 



SUMMARY OF PROPOSED ACTION: 

Approval of the Declaration of Emergency by ihe President of the Public Utilities Commission for Clean 
Water Contract No. CW-199E, "Clay/Joicc Streets Emergency Sewer Replacement" and Requesting the 
Board of Supervisors to Approve expenditure of funds for emergency work to replace the structurally 
inadequate sewers in Clay Street from Stockton to Powell Streets and Joice Street from Sacramento to 
Clay Streets. 



DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of constructing 504 linear feet of 1 8" diameter and 
256 linear feet of 12" diameter vitrified clay pipe (VCP) sewers on crushed rock bedding, concrete 
manholes, 10-inch diameter VCP culvert, videotaping existing active side sewers, replacing damaged side 
sewers, removing existing sewers and manholes; videotaping the newly constructed main sewers; traffic 
routing and trench support work; removing railroad tracks, wooden ties and cable car yokes; plugging and 
filling existing sewers with slurry grout, and all related and incidental work on Clay Street from Stockton 
to Powell Streets and Joice Street from Sacramento to Clay Streets. This work included all planning, 
design, and construction support services (under Job Order No. 1618N). 

The invitations for proposal were faxed to seventeen (17) Contractors on July 24, 1998. 

Two (2) quotations were received on July 28, 1998 as follows: 



APPROVALS: 



Firm Quote Quote Adjusted Rank 
Amount Preference Amountf*) 

1. Troy's /TrinetJV $217, 140.00 10% $195,426.00 1 
(LBE/MBE/JV) 

San Francisco, CA 94134 

2. McNamara & Smallman $219,670.00 5% $208,686.50 2 
Construction 

(LBE) 

San Francisco, CA 94 1 1 6 

(*) For comparison of quotes after application of business enterprise preferences. 

Work is of lump sum and unit bid item type. 

Application of business enterprise preferences in accordance with Chapter 12D of the San Francisco 
Administrative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was $190,000.00. The original contract as awarded to 
Troy's/Trinet Joint Venture was for $217,140.00. The final contract cost after adjustment for actual 
quantities used during construction is $207,765.00. 

Therefore, the cost of this project is estimated to be $255,415.00: 

Bureau of Engineering (Planning, Design, and Construction Support) $27,650.00 

Bureau of Construction Management (Construction Inspection) $20,000.00 

Final Construction Contract Cost $207.765.00 

Total Project Cost $255,415.00 

This project is part of the Clean Water Program's Repair and Replacement Program. Funds are available 
from the R&R Fund (Fund 5C/CPF/R&R, FAMIS Project No. CENRNRR988, Job Order No. 1 61 8N). 

Affirmative Action 

Because this was an emergency contract. HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Troy's / Trinet Joint Venture began the work on August 3, 1998 and completed it on September 1 , 1 998. 



CONTEXT OF THIS ACTION: 



t,ioN - • 3 . 3 Page 3 of 3 

In July 1998, PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 3 \5' brick sewer located in Clay Street from Stockton to Powell Streets and 
12-inch diameter sewer located in Joicc Street from Sacramento to Clay Sueets had collapsed sections. 
Sewer Operations further requested the Bureau of Engineering to prepare an Emergency Contract to 
replace these sewers. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on July 20,1998. The Declaration of Emergency has 
been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 

3. Resolution 

4. Draft Board of Supervisors Resolution 

Contact Person: Mr. Norman Chan Phone: 554-8355 



cc: B. Lim C. Tang M Williams P Cheng 

C. Jacobo F. Bongolan P. Law P. Scott 



Cost Breakdown for (J.O. # 1618N, Contract # CW-199E) 
Clay/Joice Streets Emergency Sewer Replacement 

Bureau of Engineering 



Classification 


Title 


Rate 


Hours 




Cost 


5504 


Project Manager II 


S 


92 


18 


S 


1,656 


5206 


Associate Civil Engineer 


$ 


75 


190 


s 


14,250 


5362 


Civil Engineering Assistant II 


$ 


50 


115 


s 


5,750 


5382 


Engineering Trainee IU 


$ 


40 


60 


s 


2.400 


1426 


Secretary 


S 


45 


80 


$ 


3,600 



$ 27,656 



Rounded: $ 27,650 



Bureau of Construction Management 



Classification 


Title 


Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


$ 100 


12 


S 


1,200 


5208 


Civil Engineer 


S 80 


20 


S 


1,600 


5204 


Assistant Civil Engineer 


S 61 


100 


$ 


6,100 


6318 


Construction Inspector 


S 74 


150 


s 


11,100 



S 20,000 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Item 2 -File 98-2117 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to repair the structurally inadequate 
sewer on Brannan Street from Collin P. Kelly Street to 
Second Street. 

S104,687 

1994 Sewer Revenue Bond Fund 

The PUC advises that on June 26, 1998, the sewer located 
on Brannan Street from Collin P. Kelly Street to Second 
Street collapsed, and immediate repairs were required in 
order to protect the health, welfare, and property of the 
citizens of San Francisco. The PUC declared an 
emergency on July 1,- 1998. In accordance with Section 
6.30 of the Administrative Code, the PUC initiated 
expedited contract procedures, and awarded a contract to 
Troy's Contracting/Trinet Construction Inc., a joint 
venture, in the amount of $80,037. 

The total estimated project cost is $104,687, including 
$80,037 in actual construction costs (or $2,943 less than 
the quotation amount, see Comment No. 2) and $15,650 
for DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $80,037 

DPW Bureau of Engineering 12,650 

DPW Bureau of Construction Management 9,000 

Department of Parking and Traffic 3.000 

Total $104,687 

Attachment I provided by the DPW provides further 
budget details to support this $104,687 budget. 
Attachment II provided by the DPW details the DPW 
Bureau of Engineering and Bureau of Construction 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

S 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Comments: 



Management costs, and the Department of Parking and 
Traffic costs. 

1. The Invitations for Proposals were faxed to IT 
contractors on July 7, 1998. Two quotations were received 
by PUC from qualified contractors on July 9, 1998. PUC 
reports that Troy's Contracting/Trinet Construction Inc., 
a Joint Venture, submitted the lowest bid and was 
awarded the contract in the amount of $82,980. The 
following table lists the contractors who submitted 
quotations and the amounts of the quotations: 

Contractor Quotation 

Troy's Contracting/Trinet Construction Inc., JY $82,980 
D'Arcy & Harty Construction Company $87,930 

2. PUC reports that although the contract was awarded in 
the amount of $82,980, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $80,037 or $2,943 less than the contract 
amount of $82,980. 

3. PUC reports that the repair work of the damaged sewer 
began on July 14, 1998 and was completed on August 3, 
1998. 



Recommendation: 



4. Mr. Iqbal Dhapa of the DPW advises that due to 
various delays in receiving expenditure documentation 
from the contractor, the PUC is requesting approval of 
this resolution over five months after the construction 
work was completed. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



i & i t ni -hs 



Attachment I 

- P«> \ Page 1 of 3 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau AGENDA NO. 



MEETING DATE December 15, 1998 



SUMMARY OF PROPOSED ACTION: 

Approval of the Declaration of Emergency by the President of the Public Utilities Commission for Clean 
Water Contract No. CW-197E, "Brannan Street Emergency Side Sewer Replacement" and Requesting 
the Board of Supervisors to Approve expenditure of funds for emergency work to repair the structurally 
inadequate sewer in Brannan Street from Collin P. Kelly Jr. Street to Second Street. 



DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of performing traffic routing and trench support 
work; videotaping existing active side sewers; constructing 224-linear feet of 12-inch diameter vitrified 
clay pipe (VCP) on crushed rock, bedding, 10-inch diameter VCP culverts, concrete manholes, and 6 or 
8-inch diameter side sewer connections; removing existing sewers and manholes; videotaping newly 
constructed main sewers; cleaning existing catchbasins; installing cast-iron water traps for catchbasins; 
reconstructing the concrete curb and sidewalk pavement and all related and incidental work on Brannan 
Street from Collin P. Kelly Jr. Street to Second Street. This work included all planning, design, and 
construction support services (under Job Order No. 1617N). 



The invitations for proposals were faxed to seventeen (17) contractors on July 7, 1998. 
Two (2) Quotations were received on July 9, 1998 as follows: 

ArrnovALS: 



UTHJTtCJ tHJR 



10 



& I 7 N - Pq , X 



Finn 









Attachment I 
Page I of. 3 


Quote 
Amount 


Quote 
Preference 


Adjusted 
Amountf*) 


Rank 


$82,980.00 


107c 


$74,682.00 


1 




1. Troy's /Trinet JV 
(LBE/MBE/JV) 

San Francisco. CA 94134 

2. D'arcy & Harty Construction $87,930.00 5% $83,533.50 2 
(USE) 

San Francisco, CA 94124 

(*) For comparison of quotes after application of business enterprise preferences. 
Work is of lump sum and unit bid item type. 

Application of business enterprise preferences in accordance with Chapter 1 2D of the San Francisco 
Administrative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was $81,420.00. The original contract as awarded to Troy's / 
Trinet Joint Venture was for $82,980.00. The final contract cost after adjustment for actual quantities used 
during construction is $80,037.00. 

Therefore, the cost of this project, including the change order, is estimated to be $104,687 00: 

r>«p«nTTr?«T)+ o-f Pa.nkinfx and f>i * f f J c is.ooo.oo 

Bureau of Engineering (Planning, Design, and Construcuon Support) $ 1 2,650 00 

Bureau of Construction Management (Construction Inspection) -S J.000.0 ^ ** . ° ■ ° 

Final Construcuon Contract Cost . $80.037,00 

Total Project Cost $ 1 04,687.00 

This project is part of the Clean Water Program's Repair and Replacement Program, funds arc available 
from the 1 994 Sewer Bond (Fund 5C/CPF/95A, FAM1S Project No CENSR4SI42. Job Order No. 1617N). 

AfyjrrryglYg Action 

Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Sche^v jf 

Troy's / Trinet Joint Venture began the work on July 14, 1998. and completed it on August 3. 1998. 

CONTEXT OF THIS ACTION: 

In June 1998. PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 8-inch diameter VCP side sewer located in Brannan Street from Collin P. 



11 



|£I7 K - P< 



Attachment- T 
^age Z of 3 



Kelly Jr. Street to Second Street had collapsed sections. Sewer Operations further requested the Bureau 
of Engineering to prepare and Emergency Contract to repair this sewer. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on July 1, 1998. The Declaration of Emergency has been 
signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 



3. Resolution 

4. Draft Board of Supervisors Resolution 

Contact Person: Mr. Nprman Chan 


Phone: 554-8355 

M. Williams 
P. Law 




cc: B. Lim C. Tang 

C. Jacobo F. Bongolan 
M. Wong 


P. Cheng 
P. Scott 



12 



Attachmen 



Cost Breakdown for (J.O. # 1617N, Contract # CW -197E) 
Brannan Street Emergency Sewer Replacement 

Bureau of Engineering 



Classification 


Title 




R^te 


Hours 




Cost 


5504 


Project Manager II 


S 


92 


8 


S 


736 


5206 


Associate Civil Engineer 


S 


75 


26 


s 


1,950 


5366 


Civil Engineering Associate n 


s 


63 


70 


$ 


4,410 


5204 


Assistant Civil Engineer 


$ 


61 


55 


s 


3.355 


5382 


Engineering Trainee III 


s 


40 


22 


s 


880 


1426 


Secretary 


s 


45 


30 


s 


1.350 












$ 


12,681 








Rounded: 


$ 


12,650 




Bureau of Construction Management 








Classification 


Tide 




:•'..:.■ 


Hours 




C (-•<,: 


5210 


Senior Civil Engineer 


s 


100 


6 


s 


600 


5208 


Civil Engineer 


s 


80 


10 


$ 


800 


5204 


Assistant Civil Engineer 


s 


61 


40 


s 


2,440 


6318 


Construction Inspector 


s 


74 


70 


s 


5.180 



Rounded: 



S 9.020 
$ 9,000 



Department of Parking and Traffic 



Classification 



Title 



Rate 



Hours 



Cost 



5232 
5230 
5228 
5362 


Senior Traffic Engineer 

Traffic Engineer 

Assistant Traffic Engineer 

Civil Engineering Assistant II 


S 
S 

s 
s 


100 
80 
61 
50 


2 
2 

25 


S 

s 
s 

S 


200 
160 

1.525 
1.100 










Rounded: 


s 
$ 


2,985 
3,000 



13 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Item 3 -File 98-2118 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to repair the structurally inadequate 
sewer on Naglee Avenue from Alemany Boulevard to 
Caj^uga Avenue. 

$69,659 

FY 1997-98 PUC Repair and Replacement Fund 

The PUC advises that on June 16, 1998, the sewer located 
on Naglee Avenue from Alemany Boulevard to Cayuga 
Avenue collapsed, and immediate repairs were required 
in order to protect the health, welfare, and property of the 
citizens of San Francisco. The PUC declared an 
emergency on June 16,' 1998. In accordance with Section 
6.30 of the Administrative Code, the PUC initiated 
expedited contract procedures, and awarded a contract to 
D'Arcy & Harty Construction Company in the amount 
$51,009. 

The total estimated project cost is $69,659, including 
$51,009 in actual construction costs (or $1,796 less than 
the quotation amount; see Comment No. 2) and $18,650 
for DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $51,009 

DPW Bureau of Engineering 10,650 

DPW Bureau of Construction Management 8.000 

Total $69,659 

Attachment I provided by the DPW provides further 
budget details to support this $69,659 budget. 
Attachment II provided by the DPW details the DPW 
Bureau of Engineering and Bureau of Construction 
Management costs. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Comments: 



1. The Invitations lor Proposals were faxed to 17 
contractors on June 22, 1998. Two quotations were 
received by PUC from qualified contractors on June 24, 
1998. PUC reports that D'Arcy & Harty Construction 
Company submitted the lowest quotation and was 
awarded the contract in the amount of $52,805. The 
following table lists the contractors who submitted 
quotations and the amounts of the quotations: 

Contractor Quotation 

D'Arcy & Harty Construction Company $52,805 

Troy's Contracting/Trinet Construction Inc., JY $63,210 

2. PUC reports that although the contract was awarded in 
the amount of $52,805, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $51,009 or $1,796 less than the contract 
amount of $52,805. 

3. PUC reports that the repair work of the damaged sewer 
began on June 26, 1998 and was completed on July 5, 
1998. 



Recommendation: 



4. Mr. Iqbal Dhapa of the DPW advises that due to 
various delays in receiving expenditure documentation 
from the contractor, the PUC is requesting approval of 
this resolution over six months after the construction 
work was completed. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



^age 1 o± 3 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau 



AGENDA NO. 



MEETING DATE December 15, 1998 



SUMMARY OF PROPOSED ACTION: 

Approval of the Declaration of Emergency by the President of the Public Utilities Commission for Clean 
Water Contract No. CW-190E, "Naglee Avenue Emergency Sewer Replacement" and Requesting the 
Board of Supervisors to Approve expenditure of funds for emergency work to replace the structurally 
inadequate sewer in Naglee Avenue from Alemany Boulevard to Cayuga Avenue. 



DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of constructing 1 16 linear feet of 1 8-inch diameter 
polyethylene pipe (PE.P) sewer by pipe bursting method; constructing concrete manholes, 10-inch 
diameter VCP culvert, videotaping existing active side sewers; replacing damaged side sewers, removing 
existing sewers and manholes; videotaping the newly constructed main sewers; trench support work, and 
all related and incidental work on Naglee Avenue from Alemany Boulevard to Cayuga Avenue. This work 
included all planning, design, and construction support services (under Job Order No. 1610N). 



The invitations for proposals were faxed to seventeen (17) contractors on June 22, 1998. 
Two (2) Quotations were received on June 24, 1998 as follows: 
APPROVALS: 



GENERAL 
MANAGER 



Poit-T Fax Note 7671 


C* 1 * 1 / C / «» «>l 


papes^ 1 


To Richard 


Fra "l06AL 1E>HAPA 


CoVOept. 


Co - sfopw - aoe 


***»• SJ4- 7C42 


rn°n«' SS4 - 6 33? 


F * x * 3.S2. - 04.G.I 


F< "» STS-4 - 83°8 



16 



- ~ o • ~ Page 2 of T 

Firm Quote Quote Adjusted Rank 
Amount Preference Amount* ) 

1. D'arcy & Harty Construction $52,805.00 5% S50.164.75 1 
CLBE) 

San Francisco, CA 94124 

2. Troy's /Trinet J V $63,210.00 10% S56.889.00 2 
(UBE/MBE/JV) 

San Francisco, CA 94134 

(*) For comparison of quotes after application of business enterprise preferences. 

Work is of lump sum and unit bid item type. 

Application of business enterprise preferences in accordance with Chapter 12D of the San Francisco 
Administrative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was $42,000.00. The original contract as awarded to D'arcy & 
Harry Construction was for $52,805.00. The final contract cost after adjustment for actual quantities used 
during construction is $5 1 ,009.00. 

Therefore, the cost of this project, including the change order, is estimated to be $69,659.00: 

Bureau of Engineering (Planning, Design, and Construction Support) $ 1 0.650.00 

Bureau of Construction Management (Construction Inspection) S8.000.00 

Final Construction Contract Cost . , S5 1.009.00 

Total Project Cost $69,659 00 

This project is part of the Clean Water Program's Repair and Replacement Program. Funds are available 
from the R&R Fund (Fund 5C/CPF/R&R, FAMIS Project No. CENRNRR982. Job Order No. 1610N). 



Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Schedule 

D'arcy & Harty Construction began the work on June 26, 1998 and completed it on July 5. 1998. 

CONTEXT OF THIS ACTION: 

In June 1998, PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 18-incb diameter sewer located in Naglee Avenue from Alemany Boulevard 



17 



Pase 3 of 3 



to Cayuga Avenue had broken and collapsed sections. Sewer Operations further requested the Bureau of 
Engineering to prepare and Emergency Contract to replace this sewer. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on June 16, 1998. The Declaration of Emergency has 
been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 






3. Resolution 






4. Draft Board of Supervisors Resolution 






Contact Person: Mr. Norman Chan 


Phone: 554-8355 




cc: B. Lim C. Tang 


M. Williams 


P. Cheng 


C. Jacobo F. Bongolan 


P. Law 


P. Scott 



18 



Cost Breakdown for (J.O. # 1610N, Contract # CW-190E) 
Naglee Avenue Emergency Sewer Replacement 

Bureau of Engineering 



Classification 


Tide 


Rate 


Hours 




Cost 


5504 


Project Manager II 


S 92 


7 


S 


644 


5206 


Associate Civil Engineer 


S 75 


75 


s 


5.625 


5362 


Civil Engineering Assistant II 


S 50 


45 


s 


2.250 


5382 


Engineering Trainee III 


S 40 


20 


s 


800 


1426 


Secretary 


$ 45 


30 


$ 


1.350 



S 10.669 
Rounded: $ 10,650 



Bureau of Construction Management 



Classification 



Title 



Rate Hours 



Cost 



5210 


Senior Civil Engineer 


$ 100 


5 


S 


500 


5208 


Civil Engineer 


S 80 


10 


S 


800 


5204 


Assistant Civil Engineer 


$ 61 


35 


s 


2.135 


6318 


Construction Inspector 


S 74 


62 


s 


4.588 



S 8.023 
Rounded: $ 8,000 



Po*1-ft* Fax Note 7671 


Dm l/ft/qq 




Richard Ray* 


^xOQfl L 


T^H^fA 




00 sfdpw 


- as £ 


'****• ss<j - -7£*a 


Pnone t s s + 


- 6 ^37 


'"' 2T1 - 0-KE.i 


f "' ss<- - 


B-acB 



19 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

Item 4 - File 98-2115 



Department: 
Item: 



Locations: 
Purpose of Lease: 

Lessor: 

Lessee: 

Square Footage: 

Term of Lease: 



Annual Rent 
Payable by 
Host to Airport: 



Airport Commission 

Resolution authorizing a new Concession Lease between 
Host International, Inc. (Host) and the City and County of 
San Francisco, acting by and through the Airport 
Commission for Boarding Areas "B" and "C" Bookstores in 
the South Terminal of San Francisco International Airport. 

South Terminal of the Airport, Boarding Area "B and 
Boarding Area "C" 

Concession space for the purpose of selling newspapers, 
periodicals, books, and various other items (See Description 
Section below). 

City and County of San Francisco through the Airport 

Commission 

Host International, Inc. 

Approximately 2,857 square feet in total at two locations, 
consisting of 1,573 square feet for Boarding Area "B" and 
1,284 square feet for Boarding Area "C." 

The proposed concession lease would commence on April 11, 
1999 for a period of five years, terminating on April 10, 2004. 



For Year 1, the annual rent payable by Host to the Airport is 
$410,000, which is the Minimum Annual Guarantee. For 
Years 2 through 5, annual rent payable to the Airport will be 
the greater of either the Minimum Annual Guarantee of 
$410,000, or 10% of gross receipts up to $1,000,000, plus 12% 
of gross receipts in excess of $1,000,000. 

Under the existing lease, which expires on January 10, 1999, 
Host pays a Minimum Annual Guarantee of $2,565,477 for 
9,037 square feet, covering nine locations in the South 
Terminal for Boarding Areas "B" and "C." 

As previously noted, under the proposed lease, Host would 
pay a Minimum Annual Guarantee of $410,000 for 2,857 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Utilities and 

Janitorial 

Services: 



square feet for two locations in the South Terminal. The 
6,180 square feet (9,037 square feet less 2,857 square feet) 
for the remaining seven locations have been awarded to 
another concessionaire, Pacific Gateway Concessions, LLC, 
under a separate lease (Pacific Gateway lease) as previously 
approved by the Board of Supervisors (File No. 98-1790). 
Pacific Gateway pays the Airport a Minimum Annual 
Guarantee of $2,170,000.99. 

Therefore, approval of the proposed lease, together with the 
already approved Pacific Gateway lease, would result in a 
grand total Minimum Annual Guarantee of $2,580,000.99, 
which represents an overall increase of $14,523.99 per year 
over the $2,565,477 in annual rental revenues payable to the 
Airport under the existing lease agreement with Host. 



The Lessee will pay for the costs of all utilities and janitorial 

services. 



Right of Renewal: None. 



Tenant 
Improvements: 



Description of 
Proposed Lease: 



Ms. Teresa Rivor, Senior Property Manager for the Airport, 
states that Host would be required to invest a minimum of 
$428,550. based on $150 per square foot to renovate the 
subject leased space. According to Ms. Rivor, the tenant 
improvements have not yet been made. 

Under the terms of the proposed lease, Host would have the 
option to request Airport approval of two temporary facilities 
in front of the two subject lease locations to sell merchandise 
during the period of such renovations, estimated to take 90 
days. During such time. Host would pay the Airport a 
percentage rent of 12 percent of gross revenues. 



Under the proposed lease. Host would use the bookstores 
lease in Boarding Areas "B" and "C" to operate two "focused 
bookstores." Under the terms of the proposed lease, Host 
would be required to sell the following: local, daily, and out- 
of-town newspapers; 125 separately displayed titles of 
magazines and periodicals; 2.500 separately displayed titles 
of paperback and hardback books; and book-related items as 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Comment: 



designated by the proposed lease agreement. Host would be 
permitted to sell only those optional products designated by 
the terms of the proposed lease agreement. 

Ms. Rivor reports that the Airport Commission awarded the 
subject lease to Host International, based on the 
determination that Host submitted the highest responsive 
and qualified Minimum Annual Guarantee bid. Bids were 
received from the following three firms: 



Bidder 

Host International, Inc. 
Benjamin Company 
W. H. Smith 



Minimum 
Annual Guarantee 
$410,000.00 
$ 379,526.00 
$ 302,000.00 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

Item 5 - File 98-2130 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Department of Telecommunications and 
Information Services (DTIS) 

Supplemental appropriation of $979,000 from the 
City's General Fund designated for one-time 
expenditures to finance the creation of the City's 
Year 2000 Team Project. 

$979,000 

General Fund 

The proposed supplemental appropriation would 
provide a Year 2000 City-wide resource team for 
technical assistance, monitoring, testing and 
potential implementation of necessary changes to 
equipment, vehicles and systems that could be 
affected by the year 2000 date, as a result of 
dependence on internal computer systems that are 
programmed to only accommodate dates through 
December 31, 1999. 

During the Fall of 1998, the City's Committee on 
Information Technology (COIT) conducted a series 
of interviews with 12 major City departments that 
provide critical public services to identify the status 
of the City's Year 2000 planning efforts. According 
to Mr. Matthew Hymel, the Mayor's Budget 
Director, these interviews with the City 
departments indicated that although the City's 
major computer systems (i.e., Controller's FAMIS 
and BPREP accounting, payroll and budget 
systems, the Health Services System, Department 
of Human Services General Assistance, Food 
Stamp and Child Welfare systems) are Year 2000 
compliant or in the process of being remedied, other 
critical City functions may be at risk. For example, 
embedded computer chips may affect Police, Fire, 
Department of Public Works (DPW) and Muni 
vehicle fleets and fueling stations, medical 
equipment required for patient care, City traffic 
signals, building systems that control elevators and 
heating, ventilation and air conditioning (HVAC), 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

fire alarms and security systems. Mr. Hymel 
advises that some City departments have not fully 
addressed many of the issues of equipment, vehicle 
and system failures due to non-compliant service 
vendors or embedded chips that may fail within 
existing equipment, vehicles and computer systems 
throughout the City. 

This proposed supplemental appropriation is 
intended to be a one-time project to create a Year 
2000 team of both in-house staff and outside 
consultants to primarily provide technical 
assistance, monitoring, testing and implementation 
of Year 2000 compliance requirements. The 
proposed Year 2000 Team would assist City 
department efforts to remedy Year 2000 problems, 
either through chip replacement or transition to 
new equipment. 

Budget: A summary project budget for the proposed 

supplemental appropriation, is as follows: 

Department Monitors $285,000 

Legal Assistance 94,000 

Pooled Resources 500,000 

Administration 100.000 

Total $979,000 

Mr. Hymel notes that the proposed supplemental 
appropriation would be funded on a project basis, 
which allows the proposed funding to be carried 
forward after the FY" 1998-99 budget year ends, to 
complete the work needed on the Year 2000 Project. 
Attachment I provided by Mr. Hymel contains 
explanations for this $979,000 request (see 
Comment No. 5). This supplemental appropriation 
does not authorize the hiring of any permanent 
City positions. Mr. Hymel advises that although 
most of the proposed funds will be used for staffing 
requirements, a separate Salary Ordinance is not 
required to implement the proposed supplemental 
appropriation because the authorization for any 
positions would come from existing position 
authorizations. Hiring of any new permanent 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

positions would require the future approval of the 
Board of Supervisors. 

Comments: 1. In FY 1995-96, the Controller recommended and 

the Mayor and the Board of Supervisors concurred 
that $16.8 million in one-time revenue received 
from a change in the method of accounting for Sales 
Tax and Motor Vehicle In Lieu Tax revenue be 
placed on reserve and used only for capital or other 
projects that need one-time infusions of funds. 
Since that time, specific project appropriations 
have been made from this ongoing one-time 
reserve, and the present reserve balance is 
$3,891,000. If the proposed supplemental 
appropriation of $979,000 is approved, the balance 
in this one-time reserve fund would be $2,912,000. 

2. Attachment II identifies the current status of 
Year 2000 efforts by the 12 City departments that 
provide critical public services. The 12 critical City 
departments include (1) Police Department, (2) Fire 
Department, (3) Health Department, (4) 
Department of Human Services, (5) Department of 
Public Works, (6) Department of Parking and 
Traffic, (7) Real Estate Department, (8) Water 
Department, (9) Airport, (10) Sheriffs Department, 
(11) Trial Courts and (12) Department of 
Transportation/ Muni. Mr. Hymel notes that while 
the focus of the proposed Year 2000 Team Project 
will be on these 12 City departments, all City 
departments will be held accountable for becoming 
Year 2000 compliant. As a result, Mr. Hymel 
reports that the staff and services to be funded with 
the proposed supplemental appropriation would be 
available for all City departments. 

3. In both the FY 1997-98 and FY 1998-99 budgets, 
$500,000 was included under the General City 
Responsibilities budget category, for a total of 
$1,000,000 for the Year 2000 Project. According to 
Mr. Hymel, these previous appropriations were 
used to fund the remediation of the City's payroll 
system ($247,000), Health Services System 
($186,000), Mayor's Emergency Telephone System 
($65,000) the Court Management System 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance Committee 

January 13. 1999 Finance Committee Meeting 



($126,000) as well as several smaller projects in the 
City. The current balance in the Year 2000 Project 
is approximately $25,000. 

The City has entered into an as-needed contract 
with Logix, an embedded chips consulting firm, 
using these remaining funds of $25,000. Logix will 
begin assessing the City's exposure to non- 
compliant chips in vehicles, elevators, medical and 
other equipment. Completion of a Citywide effort, 
according to Mr. Hymel, will require the proposed 
additional supplemental appropriation of funds for 
the expanded Year 2000 Project. Therefore, the 
proposed supplemental appropriation of $979,000 
would be in addition to the $1,000,000 which was 
previously appropriated for the Year 2000 Project. 

4. Mr. Hymel also notes that individual City 
department budgets may contain additional 
funding requests in the FY' 1999-2000 budget to 
replace defective equipment or accelerate 
equipment replacement schedules. As of the 
writing of this report, Mr. Hymel could not identify 
the amount of additional funds that may be needed 
or the types of equipment that may need 
replacement m the FY 1999-2000 budget, until the 
existing equipment is tested and potential remedies 
implemented, which should occur with the proposed 
supplemental funding. Mr. Hymel reports that 
Logix, or another firm may be retained, with the 
proposed supplemental appropriation of funds to 
conduct training sessions for City department staff 
on potential problems and means of testing and 
identifying problems with particular vehicles, 
elevators, etc. 

5. Mr. Hymel reports that, given the limited 
amount of time that the City has to become Year 
2000 compliant, DTIS needs to be flexible 
regarding whether the proposed funds would be 
used to fund temporary positions or to fund 
consultants that would be used to conduct specific 
tasks. According to Mr. Hymel. much of the 
specifics will depend on availability and expertise 
of staffing within the City, which has not yet been 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

determined. Therefore, Mr. Hymel reports that 
Attachment I, which contains some additional 
budget explanations, does not provide a detailed 
budget regarding the number or classification of 
City positions, the cost of each position, or the 
consultants that may be retained. According to Mr. 
Hymel, other than Logix consultants, who were 
previously retained as an embedded chip expert 
consulting firm from previously appropriated 
funds, no specific consultants have yet been 
selected for the proposed supplemental 
appropriation. 

6. Given the importance of the Year 2000 
Project, and the limited amount of time remaining 
until the end of 1999, the Budget Analyst 
recommends that COIT, with the assistance of 
DTIS staff, provide quarterly status reports to the 
Board of Supervisors regarding the Year 2000 
Project. Such status reports should identify areas of 
Year 2000 compliance as well as any potential 
problem areas that may arise within each City 
department. 

7. While the Budget Analyst acknowledges the 
critical need to make the City's equipment, vehicles 
and systems Year 2000 compliant, given the lack of 
a detailed budget regarding the costs for such 
compliance and the potential unknown additional 
costs for this project, the Budget Analyst considers 
the approval of the proposed $979,000 for such a 
purpose to be a policy matter for the Board of 
Supervisors. 

Recommendations: 1. Amend the proposed ordinance to require that 

COIT, with the assistance of DTIS staff, provide 
quarterly status reports to the Board of Supervisors 
regarding the Year 2000 Project. 

2. Amend the proposed ordinance to provide that if 
any new positions are to be subsequently created as 
a result of this one-time expenditure request of 
$979,000, that such positions be categorized as 
Limited Tenure (L) positions. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



3. Approval of the proposed supplemental 
appropriation, as amended, is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 



Year 2000 Project Budget 



Anticipated 
Hourly Rate Service Hours Total 

DEPARTMENT MONITORS 50 5,700 285,000 

Duties: Work with departments to develop Y2K implementation and contingency plans, monitor current 

department compliance and progress, disseminate common information, handle all public inquiries, 
hold city training sessions, maintain central information repository, report to COIT 
and the Board of Supervisors. 



LEGAL ASSISTANCE 145 650 94,000 

Duties: Assist departments with contract negoatiation with vendors to ensure system compliance 
and satisfy the City's "due dillegence" requirements. 

POOLED RESOURCES 200 2,500 500,000 

Duties: As-needed pool of resources to be drawn on for technical expertice, primarily from outside vendors 
for system and equipment consultation and, as required, remediation 

ADMINISTRATION (10%) 100,000 



TOTAL 979,000 



Note: Hourly rates are composite rates that include fringe benefits 

29 



** TOTAL PAGE. 02 ** 



Page 1 of 6 

II. CURRENT STATUS OF YEAR 2000 EFFORTS 

The following findings are the result of the COIT interviews with mission-critical departments. 

Critical Computer Systems 

The majority of department year 2000 efforts to date have been focused on ensuring compliance 
of critical computer systems. Accordingly, departments have made greater progress to overcome 
potential problems associated with their computer systems than on other year 2000 issues. It is 
clear, however, that significant work remains uncompleted to ensure these systems retain full 
functionality beyond the millennium. 

• General Assistance, Food Stamps, and T.ANF. These functions are all handled by 
what is known as the Case Data System, a vendor supplied application used by a 
consortium of 18 counties. A compliant version was installed at DTIS on behalf of the 
Department of Human Services (DHS) in the spring of 1998. Certification testing with 
year 2000 dates is planned to take place this quarter. 1998. 

• Child Welfare Services. This program is supported by a state-wide case management 
system that was recently developed and designed to be Year 2000 compliant. This IBM 
system is used by all counties in the state and resides at a facility in Colorado. 

• In-Home Provider Sen-ices. This application is resident on a state system (CMIPS). 
In home services are provided by many agencies in the City. The role of DHS is to 
transmit time records in order for CMIPS to issue payments to the service providers. 
This system is reported by the state to be non-compliant. Remedy is in progress with an 
estimated date of March 1999 for completion. Payroll compliance status is expected to 
be completed on time, but management reporting may be delayed. 

• FAIR / Food Stamp Outlets. Some of the computer equipment used is non-compliant, 
but it has been determined that non-compliance will not interfere with the provision of 
services. Food stamp issuance is not jeopardized. 

• The Shared Medical System. SMS is the core system within the Department of Public 
Health (DPH). This system is used for patient accounting as well as patient care. SMS is 
contractually obligated to obtain Year 2000 certification. The application, which is 
resident in Philadelphia is accessed remotely. Testing of local modifications became an 
issue, but has been overcome in that DPH will be able to test for compliance. Full 
certification is expected to be achieved in January 1999. Testing of local modifications 
will take place in March 1999. Other locally developed computer programs have already 
been remediated. 

• Enhanced 911-Dispatch. The new E91 1 system is under development by the 
Department of Emergency Communications. Compliance is planned by the vendors 

30 






Attachment II 
Page 2 of 6 



involved. Compliance verification must be included as part of the City's acceptance of 
the new system. The current implementation is planned for September 1999. 

• Interim 911 -Dispatch. The vendor of the 91 1 -Dispatch software has stated that the 
system is compliant. However, the computer (Stratus) on which the system resides is not 
currently compliant. Compliance can be achieved by applying an upgrade; however, a 
detailed analysis must be performed to determine the need and cost for this upgrade. 

• Muni's Revenue Collections. This computer system is currently non-compliant. Thus 
while the fare boxes can receive money, the ability of Muni to gather the revenue 
information will not be possible. Some questions have arisen regarding the ability of the 
probe which withdraws the funds to function properly. Plans should be made to test this 
capability. 

'Automated Train Control System (ATCS). The recently-installed system that controls 
underground Muni train flow has been tested, and passed. However, the interface with 
the underground display system has not yet been tested. 

• Police Records Management System, The existing records management system is not 
compliant. Major portions of this system are scheduled to be replaced with a new records 
management system with the implementation of the new 91 1 -Dispatch system. The 
components which are not being replaced are currently being modified by DTIS 
programming staff to ensure compliance. User departments should evaluate whether 
contingency planning should include remediation of essential components of the existing 
records management in case the new system is not implemented on schedule. 

The Police Department's new records management system is under development and is 
scheduled to be implemented at the same time as E91 1 . Compliance is planned by the 
vendors involved. The department must insure that compliance testing and verification is 
included in the acceptance testing of the system. 

• Police Identification Network & Computer Law Enforcement Tracking System. 

The department must research whether changes are required to insure that access to the 
PIN and CLETS computerized search capabilities to various law enforcement entities will 
not be compromised. 

• Sheriff Civil Case Management System. The Case Management System maintains 
case and financial information for civil processes. The existing system is not compliant 
and is planned to be replaced with a LAN based system. Current plans are to install the 
new system shortly after relocating to City Hall. Contingency plans for operating 
manually must be made in case delays occur with the implementation of the new system. 

• Photo-ID System. This has been reported to be non-compliant. This system is used by 
the Sheriff and Police. Follow-up analysis and communication with the Police should 
take place to insure that the system functions properly with Year 2000. 



31 



m i_ Ld crimen l xi 
Page 3 of 6 



• Jail Management System. The existing system is contained within the Court 
Management System (CN4S); a non-compliant application maintained by DTIS and 
undergoing remediation. The new system is a departmental system which is vendor 
supplied. Implementation is planned for June. 1998; the compliance of this package must 
be tested as part of implementation. 

• Sheriffs Fingerprint System. This NEC -based system is said to be compliant. The 
department must develop plans to certify vendor claims of compliance, and other user 
departments must verify that all links to other systems are functional. 

• Prisoner Time-Served Applications. The Sheriffs Office calculates and tracks credit 
for time served for convicted prisoners on a non-compliant computer system. The 
department must migrate from this system by the year 2000. 

• Airline Scheduling System. This system is the basis for the scheduling information 
that displays on terminal screens in passenger areas that show the arrival and departure 
times of flights. This system has recently been upgraded and is claimed compliant by the 
vendor. Testing is currently in progress. 

• Airport Security' System. This is the security system that controls access to facilities to 
which the public is not allowed. It is claimed compliant by the vendor, testing is planned 
but not yet scheduled. 

• Water Billing and Customer Sen-ice. The water billing system is compliant. This 
system also manager repairs and calls for service by water customers. PUC needs to 
certify compliance by developing and executing a test plan. 



Embedded Chips 

Non-compliant embedded computer chips may effect equipment whose functionality does not 
appear to be dependent on the time or date. Citywide, the compliance of the majority of the 
City's critical equipment is unknown. 

• City Hospitals. Existing accreditation requires that hospitals be capable of operating on 
auxiliary power for one week. However. DPH must still review all facility components 
for Year 2000 exposure to make certain that backup devices are able to function properly. 

• Patient Care Medical Equipment Patient care equipment is the responsibility of DPH, 
and ensuring compliance must be a high priority for the department. A complete 
inventory and assessment is underway, but compliance of equipment chips must still be 
verified. 



32 



AtLacnment 11 
Page 4 of 6 



• Traffic Signals. The Department of Parking and Traffic (DPT) has been told by its 
vendor that the traffic signal controllers and master clocks used to control the system are 
compliant. This must be tested by DPT at its traffic engineering facilities. The local 
control devices at each intersection with signal lights must be investigated for Year 2000 
exposure and appropriate remediation implemented. 

• City -Owned Facilities. The DPW Bureau of Building Repair (BBR) is responsible for 
facilities management of city owned buildings such as City Hall, Police and Fire Stations. 
Hall of Justice, and others. BBR is currently putting together a plan to inventory and 
assess facility components, including HVAC, backup power, elevators, and others that 
may either be computer controlled or have embedded chips that may not function 
properly with Year 2000 dates. Facilities are also owned by some enterprise departments, 
including the Port, where a similar assessment is required. 

• City-Leased Buildings. The city leases space in many buildings throughout the city. 
The Department of Real Estate (DRE) has committed to communicating to all building 
owners the need to conduct an inventory and assessment of these facilities to insure that 
use of and public access to these locations are not compromised. 

• Jail Facilities. The Sheriff maintains seven jails'. Many of these are old and have no 
computer or chip controlled security systems. Two however are new and in addition to 
security are "smart'* buildings with many electronic controls. While the department felt 
there were no compliance problems, they have agreed that a plan should be put into place 
to contact the vendors to determine compliance as well as make contingency planning 
should there be failures. 

• Vehicles and Fueling Stations. No comprehensive review of City vehicles has been 
conducted. Engines, transmissions, and other electronic components may not be Year 
2000 compliant. Additionally, maintenance equipment such as vehicle lifts and 
diagnostic equipment may be non-compliant. This issue is most critical to Police, Fire, 
Muni, and DPW operations, given the importance of these departments' fleets. 

• Radio and Dispatch. Citywide, some of this equipment is currently known to be non- 
compliant; the remainder must be inventoried and plans made for either remediation or 
replacement. These functions are especially critcal for the Police and Fire Departments. 
DPW, and the Sheriffs Office. 

• Airport Telecommunications Systems. These systems provides the infrastructure for 
communications to the Air Traffic Control and other entities. The vendor claims 
compliant, testing is planned but not scheduled. 

• Airport Field Lighting System. The system which controls the field lights is not 
compliant and is planned for replacement in April , 1999. 



33 



Page 5 of 6 



'Airport Automobile Traffic Control This is the system of traffic signals that regulates 
the flow of traffic. It is claimed compliant by the vendor; testing is planned but needs to 
be scheduled. 

• Water Storage and Distribution. An inventor)' and assessment of the Hetch Hetchy 
dam, storage, and distribution systems are underway. The water storage inventory is 
scheduled for completion in December, 1998; water delivery in March. 1999. The dams 
and aqueducts have few automated controls. 

The inventor>' of generation components on the Public Utilities Commission (PUC) dams 
is completed and assessment has begun. Assessment is planned to be completed by 
December, 1998. The recalibration of circuitry' is in progress and new compliant 
components are replacing older ones. 

• Cleanwatcr Processing. PUC has treatment plants and facilities for processing sewage. 
The inventor)' and assessment is underway and is currently scheduled for completion in 
March 1999. The treatment plant itself is compliant, but PUC needs to determine if the 
plant can be operated manually in case of power failure. On site backup power is not 
currently present. The software used at the facility has recently been upgraded and 
should be compliant; PUC plans to test for compliance. 



I endor Contracts 

No comprehensive efforts have been initiated by departments to ensure that (1) contracts with 
critical vendors do not expire on or around January 1, 2000. or (2) key vendors have actively 
planned for the potential effects of non-compliance on their own systems and equipment. 

• Departments of Public Health (DPH) and Social Services (DSS). These efforts are 
especially critical for DPH and DSS, both of which rely heavily on a complex network of 
agencies to provide client services. Although these agencies primarily use City systems, 
many of these agencies are non-profits who may lack the resources required to plan for 
and remediate potential internal problems to a degree acceptable to the City. 

• Parking Garages. Inventory and assessment at the city-owned parking garages have 
not yet taken place. The vendor supplied security, accounting, parking control, and other 
components must be inventoried and a dialogue with the vendors initiated. 



Emergency Contingency Planning 

Contingency planning will include, but is not limited to, ensuring that adequate quantities of 
essential supplies are on hand in the event that suppliers are unable to make normal deliveries; 
ensuring that manual procedures are in place to deal with failures of automated systems; and 



34 



Page 6 of 6 



ensuring adequate resources are on-hand to address potential problems. All departments must 
work directly with the Office of Emergency Services on detailed contingency plans. 

• Critical Supplies. Given possible interruptions of vendor deliveries, it is vital that city 
shelters, hospitals, clinics, jails, and maintenance yards are adequately stocked with 
critical supplies such as food, prescription medicines, vehicle parts, and other supplies. 

• Emergency Staffing. New Year's Eve is normally a holiday in which the City's public 
safety agencies are called upon to handle an increased volume of public disturbances; 
celebrations of the millennium are expected to be larger than usual for this night. 
Problems with alarms, transportation, utility, and other Year 2000 failures may exasperate 
this situation. The Police, Parking & Traffic, and Fire Departments, Sheriffs Office, and 
Office of Emergency must coordinate plans to deal with these potential problems. In 
addition, plans must be made to ensure that adequate resources are on-hand should 
department automated systems unexpectedly fail. 



35 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Item 6 - File 99-0004 
Department: 

Item: 

Amount: 
Source of Funds: 



Department of Telecommunications and Information 
Services (DTIS) 

Hearing to consider the release of reserved funds in the 
amount of $499,000 to fund the implementation of the 
fiber optic network for the Department of 
Telecommunications and Information Services. 

$499,000 

Previously appropriated and reserved General Fund 



Description: 



In May of 1998, the Board of Supervisors appropriated 
$1,000,000 of General Fund monies (File No. 98-734) for 
the Department of Telecommunications and Information 
Services (DTIS) to partially fund (1) the construction of a 
City-owned fiber optic network 1 to enable faster 
transmission of data between City departments (i.e. 
emergency services information) and (2) to completely 
fund the development of an Internet On-Line 2 Processing 
Plan, which would include the design of a system to 
enable citizens to conduct on-line business transactions 
with City departments over the City-owned fiber optic 
network. 

Of the above-noted $1,000,000 in previously appropriated 
General Fund monies, the Board of Supervisors placed 
$75,000 on reserve for the development of an Internet On- 
Line Processing Plan and $925,000 on reserve for the 
construction of a City-owned fiber optic network. 

The Finance Committee subsequently released $66,780 in 
reserved funds for the development of the Internet On- 
Line Processing Plan in November of 1998 (File No. 98- 
1783), leaving a balance of $933,220 on reserve. This 



1 A "fiber optic network" is used to transmit digital information, in the form of a light, such as from a 
laser, through fibers or thin rods of glass or other transparent material, rather than using copper 
wires to transmit data electronically, such as is most commonly used for telephone and data 
transmissions. The "bandwidth" or data transfer capacity of a fiber optic network greatly exceeds 
that of a copper wire network, and a fiber optic network is not subject to electrical interference. 

2 On-line means accomplishing an operation, such as transferring funds, while connected to a 
computer network. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

36 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



request would authorize the release of an additional 
$499,000 to fund enhancements to the City's existing 
communications network and a needs analysis for the 
construction of the City-owned fiber optic network, 
leaving a balance of $434,220 on reserve. 

In May of 1998, according to Ms. Denise Brady of DTIS, 
DTIS planned to construct a City-owned fiber optic 
network that would provide City agencies with a 
telecommunications system featuring high-speed 
connections delivering voice, data, and video 
communications to 10 City-owned facilities, including 
City Hall, the new Combined Emergency Command 
Center, and the Central Data Center at One Market 
Plaza. Ms. Brady states that at the time, DTIS estimated 
that the total cost of the above-noted City-owned fiber 
optic network to be $1,605,000. However, according to 
Ms. Brady, DTIS desires to reevaluate the need for such a 
City-owned fiber-optic network. Therefore, DTIS now 
requests the release of $499,000 in previously reserved 
funds for the following purposes: 

A) A needs analysis of current and projected City use of 
communication services. Based on the results of this 
needs analysis, DTIS will either (1) proceed with the 
above-noted City-owned fiber optic network. (2) adopt a 
new design for a City-owned fiber optic network, or (3) 
seek to meet the City's communication needs from some 
other source. 

B) Enhancements to the City's existing communications 
network, including (1) the installation of a computerized 
security system for the City's network and router 
management software to allow DTIS to manage the daily 
upkeep of the network, and (2) replacement of the City 'a 
existing Web Server 3 . Ms. Brady states that although 
these enhancements may eventually be used in the future 
as part of the City-owned fiber optic network, they are 
currently required by DTIS to continue to support the 
City's existing communications network. 



s A Web Server is used to access Internet sites and e-mail. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

37 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Budget: 



A summary budget for this request of $499,000 is as 
follows: 



Internet/Intranet Security Firewalls $83,000 



Router Management Software/ 




Network Management Server 


79,000 


Network Design 


95,000 


Web Server 


67,000 


PG&E Construction Supervision 


25,000 


Needs Analysis 


150,000 



Total 



$499,000 



Comment: 



Recommendation: 



The Attachment, provided by Ms. Brady, contains the 
budget explanations to support this request of $499,000. 

According to Ms. Brady, DTIS has selected the firm of 
Fluor Daniel Telecom, through a competitive selection 
process, to perform professional service for "Network 
Design" as listed and described in the Attachment. Ms. 
Brady states that DTIS has not yet selected a contractor 
to perform professional services for "Needs Analysis," but 
will choose the contractor through a competitive selection 
process. 

Approve the requested release of reserved funds. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

38 



Attachment 
Page 1 of 3 



Date: 1/8/99 

Sender: Denise Brady 

To: Gabriel Cabrera 

cc: Julia Friedlander, Ed Colchado 

Priority: Normal 

Subject:budget 



1) "Internet/Intranet Security Firewalls": $83,000 

Firewall upgrade; 

Intranet Firewall; 

Internet/Intranet Security hardware/software; 

Centralize FTP Server w/10 gigs of storage 



2) "Router Management Software/ 

Network Management Server": $79,000 

Domain Name Servers and Domain Controllers for NT; 

Protocol Analyzer; 

Centralized Radius Security Server 



3) Network Design: $95,000 

Professional services to assist City staff develop the 
system conceptual design and the development of an 
implementation Plan and Ongoing Services Plan. 



4) "PG&E Engineering": $25,000 

Hourly Labor Rates are as follows: 

Field rates: 

$140/hour - 2 person crew 
$210/hour - 3 person crew 

5) Web Server: $67,000 

6) "Needs Analysis for Municipal Fiber Network": $150,000 

A contractor has not yet been selected. Based on our 
extensive experience in using consultants for various 
analysis and design work and backed up by informal 
conversations with various consultants it is our 
professional opinion that a needs analysis can be done at 
a cost not to exceed $150,000. 



Total $^99,000 



39 




Page 2 of 3 
/>'C - 

Department of Telecommunications and Information Services r '/t: 
City and County of San Francisco v ' -V • r , / -'?!7?- v , 

*<&,. *■*'%?* 




December 28, 1998 

Gloria L. Young, Clerk -^ 

Board of Supervisors 

City & County of San Francisco 

401 Van Ness Avenue, 3rd Floor 

San Francisco, CA 94102 

SUBJECT: Release of Funds on Reserve at the Finance Committee (Ordinance #195-98) 

Dear Ms. Young: 

In June of this year, the Board of Supervisors appropriated $1,000,000 from the "General Fund 
Reserve-Network" and placed it on reserve at the Finance Committee. $66,780 was already 
released for City Access leaving a balance of $933,220. We have immediate need for a portion of 
the reserve to fund necessary improvements, including security systems for the City's existing 
wide area network, Web Server replacement, network design and a needs analysis for the 
proposed Municipal Fiber Network. Therefore, we are requesting that $499,000 of the $933,220 
on reserve at the Finance Committee be released to the department for these purposes. 

• Intemet/Intranet Security Firewalls $83,000 
DTIS provides a centralized and secure point of access to the Internet for the majority of 
departments. Some departments, however, such as DPH and the Library, have their own 
connections to the Internet and/or to other external sources. In order to insure that these 
departments have access to the City's WAN, and, at the same time, all City departments are 
protected from potential intruders from sources outside the City network, it is essential to 
establish an internal firewall between the City's Wide Area Network and the departments with 
external connections and to provide Security Software. The City's external auditor has identified 
the lack of such a firewall as a security problem for several years. Absence of the firewall has 
delayed implementation of the Time Entry and Scheduling System for DPH and MUNI. 

• Router Management Software/Network Management Server $79,000 
The router management software would allow DTIS to monitor the daily health of the network 
and provide the tools necessary to determine when a particular part of the network needs to add 
more bandwidth in order to avoid problems and insure adequate response times. The software is 
also critical in providing DTIS the ability to isolate and identify the nature of a response time 
problem. Particularly at times of increased network activity such as year end fiscal closings, the 
network is vulnerable to sporadic network disruptions. Department WAN activity has grown 
annually, and without adequate network management capacity, City departments will experience 
disruptions and failures in access to critical systems. This software addresses network 
components that are not managed by Tivoli. 

415-554-0800 875 Stevenson Street . Fifth Floor . San Francisco . CA 94103-0948 Fax 415-554^730 

40 



'■09 



Attachment 

r\ • t v ,-m i Page 3 of 3 

Glona L. Young, Clerk 

Board of Supervisors 

December 28, 1998 

Page Two 



• Network Design $95,000 
Network design consultation re: the use of PG&E conduit to provide network connectivity 
between many City buildings including City Hall, the Hall of Justice, the E-91 1 facility, and One 
Market Plaza. Fluor Daniel Telecom developed a Scope of Work and preliminary network design 
as a basis for a bid. 

• Web Server $67,000 
The Web Server provides high availability access to the City & County of San Francisco Web 
Site and to Internet e-mail. It is imperative that these systems be available 24 hours a day, and 
that outages and downtime be minimized. Two recent outages caused by server failure have 
occurred (one for a full 24 hours.) These failures made the City's web site unavailable to the 
public and prevented City employees from receiving Internet e-mail. These funds will replace the 
server. The existing server will be used as a backup unit. 

• PG&E Engineering $25,000 
Engineering and construction supervision are required for the installation of fiber in PG&E 
conduits. 

• Needs Analysis for Municipal Fiber Network $1 50,000 
This funding will provide for a needs analysis of current and projected City use of 
telecommunications services to determine design of a municipal fiber network. 



We respectfully request that this item be calendared at the Finance Committee on January 6, 
1999. We are enclosing copies of Ordinance 195-98. If you have any questions regarding this 
request, please contact Deputy Director Denise Brady, at 554-701 1 . Thank you for your 
continued support. 

Sincerely, 



Julia M.C. Friedlander 
Acting Director 




Enclosures 



Barbara Kaufman, President, San Francisco Board of Supervisors 
Supervisor Mabel Teng, Chair, Finance Committee 
Supervisor Gavin Newsom, Member, Finance Committee 



41 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 

Item 7 - File 98-1719 

Note: This item was continued by the Finance Committee at its meeting of 
January 6, 1999. 



Department: 
Item: 



Description: 



Tax Collector 

Resolution urging the Tax Collector to conduct an audit of 
Transient Occupancy Tax (Hotel Tax) payments to the 
City from 240 San Francisco Single Room Occupancy 
(SRO) hotels with 50 or fewer units. 

According to Mr. Richard Sullivan, Tax Collector, Single 
Room Occupancy (SRO) hotels are composed of rooms that 
are single person occupancy only and rented to guests on 
a hourly, weekly or monthly basis. Mr. Sullivan states 
that all hotels in San Francisco are required to reimburse 
the City for the Hotel Tax charged on each hotel room at 
the daily rate of 14 percent for guests who stay at the 
hotel for less than 30 consecutive days. The exception to 
this requirement is hotel operators renting 
accommodations to guests at less than $30 per day or 
$100 per week. Mr. Sullivan states that payments from 
the Hotel Tax to the City are required to be remitted on a 
monthly basis. If such payments are not remitted within 
30 days of the scheduled monthly payment date, then a 
penalty of 20 percent of the delinquent payment and 
interest at 1 percent are imposed each month that the 
payments remain delinquent, in addition to the base 
Hotel Tax monies due. 

Mr. John Madden of the Controller's Office states that in 
FY 1998-99, Hotel Tax is projected to generate revenues, 
totaling $163,580,035, for the City. According to Mr. 
Sullivan, $160,036 of the total Hotel Tax of $163,580,035 
is generated from SRO hotels with 50 or fewer units. 

Mr. Sullivan reports that the internal controls pertaining 
to revenue collections by the operators at SRO hotels with 
50 or fewer units are sometimes inadequate, which, in 
turn, may lead to the underreporting of Hotel Taxes due 
to the City. 

Approval of the proposed resolution would urge the Tax 
Collector to conduct an audit for the approximately four- 
year period from October 1, 1994 to September 10, 1998 of 
a representative sample of 48, or 20 percent, of the 240 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

42 



Memo to Finance Committee 

January 13, 1999 Finance Committee Meeting 



Comments: 



SRO hotels in the City with 50 or fewer units to 
determine whether or not those hotels have fully paid all 
Hotel Taxes which are due to the City. 

1. Mr. Sullivan reports that presently 47, or 19.6 percent, 
of the 240 SRO hotels owe the City $47,843 in delinquent 
Hotel Taxes plus $5,054 in penalties and $6,891 in 
interest charges for total delinquent charges of $59,788 
owed to the City. 

2. Mr. Sullivan advised the Budget Analyst that the 
subject audit would be conducted with existing staff. 
Based on an estimate of 768 to 864 hours to complete the 
proposed audit, the total estimated cost of the audit would 
range from $119,969 to $134,965, according to Mr. 
Sullivan, but as previously noted, the audit would be 
conducted with existing staff, within the Tax Collector's 
existing budget. 

3. The attached memo from Mr. Sullivan discusses 
potential revenue collections from the proposed subject 
audit. 

4. The Author requests that this proposed resolution be 
continued to the call of the Chair. 



Recommendation: 



Continue the proposed resolution to the call of the Chair, 
as requested by the Author. 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 




Harvev M. Rose 



Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

43 



>EC-10-1998 11:37 5F BUSINESS TftX P. 02/02 

Attachment 



Out of 10% sampling, 29% is paying and 71% non-paying ( Non-paying because Hotel Operators 
claimed for Hotel Tax exemptions per Sec. 506, Article 7 of the SF. Hotel Tax Ordinance). 

Of total population of 10% sampling (24), only 29% is paying, the equivalent of 7 accounts (7/24=. 29) 
ifxtrapolated, out of 240 accounts, approximately 70 accounts arc paying. 

Given the above information, it is not easy to estimate the collection to be realized as a result of the audit 
because the proposed subject audit may come up to a zero audit or in other words, the audit may result 
in a findings that majority of the Hotel Operators is in complete compliance with the Hotel Tax 
Ordinance. 



44 

TOTPL P. 02 



0-25 




City and County of£an Francisco 

Meeting JVIinutes 

finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



City Hall 

1 Dr. Carlton B 

Goodlett Place 

San Francisco, CA 

941 02^689 



Wednesday, January 20, 1999 



1:00 PM 
Regular Meeting 



Room 263 



Members Present: Mabel Teng, Barbara Kaufman, Gavin Newsom. 



DOCUMENTS DCP T. 



Meeting Convened 

The meeting convened at 1:03 p.m. 
REGULAR AGENDA 



JAN 2 1 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



982004 [Reserved Funds, Recreation and Park Department] 

Hearing to consider release of reserved funds, Recreation and Park Department (Fiscal Year 1998-1999 
budget), in the amount of $575,000 to begin several new recreation programs, graffiti program^ ustomer 
services, and enhance existing programs throughout all recreation centers. (Recreation and Parks Department) 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Release of $575,000 approved. Speaker: Har\-ey Rose, Budget Analyst. Speaker in 
support: Ernie Prindle, Recreation and Park Department. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Teng, Kaufman, Newsom 
990003 [Reserved Funds, Recreation and Park Department] 

Hearing to consider release of reserved funds. Recreation and Park Department, (various Sewer Revenue Bond 
Funds, Resolution 323-95), in the amount of $70,000 to fund the restoration of the Richmond Sunset Sewage 
Treatment Plant. (Recreation and Parks Department) 

1/4/99, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Release of $60,015 approved. Speaker: Harvey Rose, Budget Analyst. Speaker in 
support: Deborah Learner, Recreation and Park Department. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Teng, Kaufman, Newsom 
990083 [Reserved Funds, Mayor's Office , DCYF) Supervisor Teng 

Hearing to consider release of reserved funds, Mayor's Department of Children, Youth, and their Families in 
the amount of $2 million (Fiscal Year 1998-1999 Budget), to establish a High Quality Child Care Fund 
(HQCCF). 

1/13/99, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee Release of $2,000,000 approved. Speaker: Harvey Rose. Budget Analyst. Speaker in 
support: Deborah Alvarez-Rodriguez, Director. Department of Children. Youth, and Their Families. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Teng, Kaufman, Newsom 



City and County of San Francisco 



Printed at 3:1 SPM on f2aV9 



Finance Committee Meeting Minutes January 20, 1999 

990022 | Airport Concession Lease] 

Resolution approving New International Terminal Lease between Calstar Retail, Inc. a Small Business 
Enterprise Set-Aside, and the City and County of San Francisco, acting by and through its Airport 
Commission. (Airport Commission) 

1/6/99, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speaker: Harvey Rose, Budget Analyst Speaker in support Jon Ballesteros, 
Governmental Affairs Coordinator, Airport. 
RECOMMENDED., by the following vote: 

Ayes: 3 - Teng, Kaufman, Newsom 

Adjournment 

Meeting adjourned at 1 :40 p.m. 



City and County of San Francisco 2 Printed at 3:11 PM on 1/2V99 



0. 2$4 






^OARD of SUPERVISORS 




401 Van Ness Avenue, Room 308 

San Francisco 94102-4532 

Tel. No. 554-5184 

TDD No. 554-5227 



DOCUMENTS DEPT. 



NOTICE OF CANCELLED MEETING 

JF INANCE AND LABOR COMMITTEE 
SAN FRANCISCO BOARD OF SUPERVISORS 



JAN 2 8 1S99 

SAN FRANCISCO 
p UBLIC LIBRARY 



NOTICE IS HEREBY GIVEN That the regularly scheduled Finance and 
Labor Committee meeting of Wednesday 1/; January 27, 1999, at 
10:00 a.m., at City Hall, Room 263, 1 Dr. Carlton B. Goodlett Place, has 
been cancelled. 



/)r 



/^j^yj^^cJ--^^ 



Gloria L. Young 
Clerk of the Board 




City and County of £an Francisco 

Meeting Minutes 
^Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, February 03, 1999 



10:00 AM 
Regular Meeting 



Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10.07 a.m. 

CONSENT AGENDA 

All items on consent calendar were severed. 

REGULAR AGENDA 



DOCUMENTS DEPT. 

FES 4 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



990085 [Emergency Repair, Geneva Avenue Sewer] 

Resolution approving expenditure of funds for the emergency work to replace the collapsed 12-inch diameter 
sewer on Geneva Avenue between Brookdale Avenue and Prague Street - $82,225.00. (Public Utilities 
Commission) 

1/14/99, P.ECEIVED AND ASSIGNED to Finance and Labor Committee. 

Severed. Heard in Committee. Speakers: Beth Goldstein, Public Utilities Commission; Norman Chan, 

Department of Public Works; Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano. Amended 

on page 1, line 18 replace "582,225" with "$74,467". 

AMENDED. 

Resolution approving expenditure of funds for the emergency work to replace the collapsed 12-inch diameter 

sewer on Geneva Avenue between Brookdale Avenue and Prague Street - $74,467. (Public Utilities 

Commission) 

RECOMMENDED AS AMENDED., by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

990086 [Emergency Repairs. Buchanan/Washington Streets Sewers] 

Resolution approving expenditure of funds for the emergency work to replace the structurally inadequate 
sewers on Buchanan Street from Jackson to Washington Streets, on Washington Street from Webster to 
Laguna Streets - $305,277.00. (Public Utilities Commission) 

1/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Severed. Heard in Committee. Speakers: Norman Chan. Department of Public Works 
RECOMMENDED., by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 11:23 AM on 2/W9 



Finance and Labor Committee 



Meeting Minutes 



February 3, 1999 



990049 [Federal Funding - Community Development] Mayor 

Resolution approving the 1999 Community Development Program authorizing the Mayor, on behalf of the 
City and County of San Francisco, to accept and expend the City's 1999 Community Development Block 
Grant (CDBG) entitlement from the U.S. Department of Housing and Urban Development, and program 
income generated by the San Francisco Redevelopment Agency up to $65,853,985 which include indirect 
costs of $124,015; approving expenditure schedules for recipient departments and agencies and for indirect 
costs, and, determining no environmental evaluation is required, authorizing the receipt and deposit in 
contingencies of 1999 CDBG entitlement funds in excess of $25,123,000. 

1/1 1/99, ASSIGNED to Finance Committee. 

1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Pamela David, Director Mayor's Office of Community Development; George 
Welch, President Citizens Committee Community Development; Supervisor Ammiano; Ed Harrington, 
Controller; Harvey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, Director Mayor's Office of Housing; 
Norma Telson; Rita Alvisa; Miss A. Rosa; Miss Toni; Marcio Vela; Maurice Sabinas; Joseph Sciancalepore; 
Diane Chin; Miss Reyes; Supervisor Bierman; Supervisor Ammiano. Continued to February 10, 1999. 
CONTINUED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

990078 [Federal Funding - Emergency Shelter Program) 

Resolution approving the 1999 Emergency Shelter Grants Program and Expenditure Schedule and authorizing 
the Mayor on behalf of the City and City and County of San Francisco to apply for, accept, and expend a 
$891,000 entitlement under the Emergency Shelter Grants Program from the U.S. Department of Housing and 
Urban Development. (Mayor) 

1/13/99, RECErVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Pamela David, Director Mayor's Office of Community Development; 
George Welch, President Citizens Committee Community Development; Supervisor Ammiano; Ed Harrington, 
Controller; Harvey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, Director Mayor's Office of Housing; 
Norma Telson; Rita Alvisa; Miss A. Rosa; Miss Toni; Marcio Vela; Maurice Sabinas; Joseph Sciancalepore; 
Diane Chin; Miss Reyes; Supervisor Bierman; Supervisor Ammiano. Continued to February 10, 1999. 
CONTINUED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

990079 [Federal Funding - Home Program] 

Resolution authorizing the Mayor of the City and County of San Francisco to apply for, accept and administer 
a grant from the U.S. Department of Housing and Urban Development for a total amount not to exceed 
$7,079,000 for the HOME Program authorized under Title II of the National Affordable Housing Act of 1990. 
Public Law Number 101-625, and approving the HOME Program description as described in the 1999 action 
plan for San Francisco's consolidated plan. Indirect costs associated with the acceptance of this grant funds 
will be paid by the Community Development Block Grant funds. (Mayor) 

1/13/99, RECErVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Pamela David, Director Mayor's Office of Community Development; 
George Welch, President Citizens Committee Community Development; Supervisor Ammiano; Ed Harrington, 
Controller; Harvey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, Director Mayor's Office of Housing; 
Norma Telson; Rita Alvisa; Miss A. Rosa; Miss Toni; Marcio Vela; Maurice Sabinas; Joseph Sciancalepore; 
Diane Chin; Miss Reyes; Supervisor Bierman; Supervisor Ammiano. Continued to February 10, 1999. 
CONTINUED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 1 1 :24 AM on 2/4/99 



Finance and Labor Committee 



Meeting Minutes 



February 3, 1999 



981561 [Waiving Fees, Vietnamese Tet Festival] Supervisor Yee 

Resolution waiving fees to be charged for the temporary street closing for the February 1998 Vietnamese Tet 
Festiral. 

9/22/98, RECEIVED AND ASSIGNED to Finance Committee. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Hoanh Bui, Vietnamese Community Center; 

Supervisor Ammiano. Amended on page 1, lines 3 and 5, replace "February 1998" with "January 25, 1998". 

AMENDED. 

Resolution waiving fees to be charged for the temporary street closing for the January 25, 1998, Vietnamese 

Tet Festival. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

990076 [Sale of Real Property] 

Resolution authorizing sale of surplus City-owned property (100 square foot sewer easement) at the southeast 
comer of Fifth and Bluxome Streets, portion of Assessor's Block 3786, Lot 17. (Real Estate Department) 

1/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Toni DeLucchi, Real Estate; Harvey Rose, Budget Analyst. 
RECOMMENDED., by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

990077 [City Hall Cafe' Management Agreements] 

Resolution authorizing and approving a management agreement between the City and County of San 
Francisco and Events Management Inc. dba McCall and Associates, for operation of a cafe' located in the 
North Light Court of City Hall; and ratifying certain acts in connection with such management agreement and 
a management agreement with L and L ; a Partnership for the operation of a cafe' located on the ground floor of 
the City Hall. (Real Estate Department) 

1/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

990040 [Airport Lease Agreement for Federal Express Corporation] 

Resolution approving lease agreement for cargo warehouse space in the North Field Cargo Facility between 
Federal Express Corporation and the City and County of San Francisco, acting by and through its Airport 
Commission. (Airport Commission) 

1/7/99, RECEIVED AND ASSIGNED to Finance Committee. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Jon Ballesteros, Airport; Harvey Rose, Budget Analyst; Supervisor Ammiano. 
RECOMMENDED., by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

ADJOURNMENT 

Meeting adjourned at 1:10 p.m. 



City and County of San Francisco 



Printed at 11:24 AM on 2/4M9 



F 

3 



CITY AND COUNTY 




Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



of san FRANciscfjOCUMENTS DEPT. 



BOARD OF SUPERVISORS 



FEB 2 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

FAX (415) 252-0461 



January 29, 1999 



TO: x . Finance and Labor Committee 



FROM: ^Budget Analyst ^.^^^^^s -G»~ •**-«*. ^ e l 
SUBJECT: February 3, 1999 Finance and Labor Committee Meeting 
Item 1 - File 99-0085 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a collapsed 12-inch diameter 
sewer on Geneva Avenue between Brookdale Avenue and 
Prague Street. 

$74,467 

FA" 1998-99 PUC Repair and Replacement Fund 

The PUC advises that on January 29, 1998, the sewer 
located on Geneva Avenue between Brookdale Avenue 
and Prague Street collapsed, and immediate repairs were 
required in order to protect the health, welfare and 
property of the citizens of San Francisco. The PUC 
declared an emergency on January 29, 1998. In 
accordance with Section 6:30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to D'arcy & Harty Construction 
Company in the amount of $56,910. 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Budget: The total estimated project cost is $74,467, including 

$56,910 in actual construction costs (or $910 less than the 
quotation amount, see Comment No. 2) and $17,557 for 
DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $56,910 

DPW Bureau of Engineering 10,508 

DPW Bureau of Construction Management 7.049 

Total $74,467 

Attachment I, provided by the DPW, contains further 
budget details to support this $74,467 budget. 
Attachment II, also provided by the DPW, details the 
DPW Bureau of Engineering and Bureau of Construction 
costs. 

Comments: 1. Invitations for Proposals were faxed to 22 contractors 

on February 3, 1998. Two quotations were received by 
PUC from qualified contractors on February 5, 1998. 
PUC reports that D'arcy & Harty Construction Company 
submitted the lowest quotation and was awarded the 
contract in the amount of $57,820. The following table 
lists the contractors who submitted quotations and the 
amounts of the quotations: 

Contractor Quotation 

D'arcy & Hart Construction Company $57,820 

Pacific Liners $57,950 

2. PUC reports that although the contract was awarded 
in the amount of $57,820, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $56,910 or $910 less than the contract 
amount of $57,820. 

3. PUC reports that the repair work at the damaged 
sewer began on February 10, 1998, and was completed on 
February 24, 1998. 

4. Mr. P.T. Law of the DPW advises that due to various 
delays in receiving expenditure documentation from the 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

contractor, the PUC is requesting approval of this 
resolution nearly 12 months after the construction work 
was completed. 

5. Line 18 of the proposed resolution refers to the 
estimated project costs at $82,225. As shown in the 
budget above, this cost was revised to $74,467. 

Recommendation: 1. In accordance with Comment No. 5 above, amend the 

proposed resolution to replace the estimated project costs 
of $82,225 with $74,467. 

2. Approve the proposed resolution, as amended. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Attachment I 
Page 1 or T 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau AGENDA NO 



MEETING DATE January 12. 1999 



SUMMARY OF PROPOSED ACTION: 

Ratifying the Declaration of Emergency made by the President of the Public Utilities Commission for 
Clean Water Program Contract No. CW-154E, "Geneva Avenue Emergency Sewer Replacement" and 
Requesting the Board of Supervisors to Approve expenditure of funds for emergency work to replace the 
collapsed 12-inch diameter sewer on Geneva Avenue between Brookdak Avenue and Prague Street. 



DESCWfrnON OF PROPOSED ACTION: 

The work performed under this Emergency consisted of traffic routing work; lining the existing 12-inch 
diameter sewer with folded Polyvinyl chloride (PVC) liner, removing protruding side sewers; side sewer 
flow diversion; internally reinstating side sewers; videotaping and cleaning the existing sewer; 
mobilization; and all related and incidental work on Geneva Avenue between Brookdale Avenue and 
Prague Street. This work included all planning, design, and construction support services (under Job Order 
No. 1580N). 

The invitations for proposals were faxed to twenty- two (22) contractors on February 3. 1998. 

Two (2) Quotations were received on February 5, 1998 as follows: 



xprnoVALfc 

OGTtxntDcri . Steven Carmic ha el 



Romaine A. Soldridge 



Attachment I 
Page 2 of 3 

Firm Quote Quote Adjusted Rank 
Amount Preference Amountf*') 

1. D'arcy & Harty Construction $57,820.00 5% S54.929.00 1 
(LBE) 

San Francisco, CA 

2. Pacific Liners 557,950.00 0% S57.950.00 2 
Vacaville, CA 

(*) For comparison of quotes after application of business enterprise preferences. 

Work is of lump sum and unit bid item type. 

Application of business enterprise preferences in accordance with Chapter 12D of the San Francisco 
Adminisnative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was 568,860.00. The original contract as awarded to D'arcy & 
Harry Construction was for 557,820.00. The final contract cost after adjustment for actual quantities used 
during construction is 556,910.00. 

Therefore, the actual cost of this project is S82.225.00: u 

Bureau of Engineering (Planning, Design, and Construction Support) $4 3,266.00 

Bureau of Construction Management (Construction Inspection) 5 7,049.00 

Final Construction Contract Cost __^__ S56.910.0O 

Total Project Cost S82325-XKT 

74 t uy 

This project is part of the Clean Water Program' s Repair and Replacement Program. Funds are available 
from the Repair & Replacement Fund (Fund 5C/CPF/R&R, FAMIS Project No. CENRNRR957, Job 
Order No. 1580N). 

Affirmative Action 

Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Schedule 

D'arcy & Harry Construction began the work on February 10, 1998 and completed it on February 24, 1998. 



Attachment I 
Page 3 of 3 



CONTEXT OF THIS ACTION: 



On January 29, 1998 PUC Sewer Operations notified ihc Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 12-inch diameter sewer located on Geneva Avenue between Brookdale 
Avenue and Prague street was broken and had collapsed sections. Sewer Operations further requested the 
Bureau of Engineering to prepare an Emergency Contract to replace this sewer. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on January 29. 1 998. The Declaration of Emergency has 
been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 

1 . Resolution 

2. Draft Board of Supervisors Resolution 

Contact Person: Mr Norman Chan Phone: 554-8355 



cc: B. Lim C. Tang M. Williams T. Won 

C. Jacobo F. Bongolan P. Law P. Scott 



Attachment II 



Cost Breakdown for ( J.O. #1580N, Contract #CW-154E) 
Geneva Ave Emergency Sewer Replacement 



Bureau of Engineering 



Classification 



Title 



Rate 



Hours 



5504 Project Manager II $ 
5206 Associate Civil Engineer $ 
5202 Junior Civil Engineer % 

5366 Civil Engineering Associate II $ 
5381 Engineering Student Trainee II $ 
1426 Secretary S_ 



Cost 



92 


5 


$ 


450 


75 


23 


$ 


1,725 


50 


50 


$ 


2,500 


60 


68 


$ 


4,080 


33 


19 


$ 


627 


43 


25 


S 


1,118 






s 


10,510 




Rounded: 


s 


10,508 



Bureau of Construction Management 



Classification 


Title 


Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


$ 100 


4 


$ 


400 


5208 


Civil Engineer 


$ 80 


7 


$ 


560 


5204 


Assistant Civil Engineer 


$ 59 


53 


S 


3,127 


6318 


Construction Inspector 


$ 74 


40 


S 


2,960 










s 


7,047 








Rounded: 


$ 


7,049 



Post-ir Fax Note 7671 
To Q ft a s i e »- 

**' S54- 7£><4-2. 
' 2S2- 0<*Gf 



e. t 



aoes^w' B* 



£ 



Co- SFDPW - Sot 
Pnone# 554. - 5 3^-> 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-0086 



Department: 



Item: 



Amount: 
Source of Funds: 
Description: 



Budget: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergenc}' work to replace two collapsed sewers on (1) 
Buchanan Street from Jackson Street to Washington 
Street and (2) Washington Street from Webster Street to 
Laguna Street. 

$305,277 

FY 1998-99 PUC Repair and Replacement Fund 

The PUC advises that on March 20, 1998, two sewers, one 
located on Buchanan Street from Jackson Street to 
Washington Street and one located on Washington Street 
from Webster Street to Laguna Street collapsed, and 
immediate repairs were required in order to protect the 
health, welfare and property of the citizens of San 
Francisco. The PUC declared an emergency on March 20, 
1998. In accordance with Section 6:30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to A. Ruiz 
Construction Company in the amount of $261,627. 

The total estimated project cost is $305,277, including 
$261,627 in actual construction costs (or $21,338 less 
than the quotation amount, see Comment No. 2) and 
$43,650 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $261,627 

DPW Bureau of Engineering 23,650 

DPW Bureau of Construction Management 20.000 



Total 



$305,277 



Attachment I, provided by the DPW T , contains further 
budget details to support this $305,277 budget. 
Attachment II, also provided by the DPW, details the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Comments: 



DPW Bureau of Engineering and Bureau of Construction 
costs. 

1. Invitations for Proposals were faxed to 11 contractors 
on March 31, 1998. Four quotations were received by 
PUC from qualified contractors on April 2, 1998. PUC 
reports that A. Ruiz Construction Company submitted the 
second lowest quotation, but was awarded the contract in 
the amount of $261,627. Willie Electric Co.. Inc., the 
lowest bidder, was rejected as a non-responsive firm 
because the firm did not provide an acceptable 
performance bond, according to P.T. Law of the DPW. 
The following table lists the contractors who submitted 
quotations and the amounts of the quotations: 

Contractor Quotation 

Willie Electric Co.. Inc.* $244,265 

A. Ruiz Construction, Inc. $282,965 

JMB Construction, Inc. $307,460 

Marinship Construction $462,130 

* Rejected as a non-responsive firm. 

2. PUC reports that although the contract was awarded 
in the amount of $282,965, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $261,627 or S21.338 less than the 
contract amount of $282,965. 

3. PUC reports that the repair work at the damaged 
sewer began on April 20, 1998 and was completed on July 
17. 1998. 



Recommendation: 



4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution over 6 
months after the construction work was completed. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 
^age 1 of 3 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau AGENDA NO. 



MEETING DATE January 12, 1999 

SUMMARY OF PROPOSED ACTION: 

Ratifying the Declaration of Emergency made by the President of the Public Utilities Commission for 
Clean Water program Contract No. CW-180E, "Washington/Buchanan Streets Emergency Sewer 
Replacement" and Requesting the Board of Supervisors to Approve expenditure of funds for emergency 
work to replace the structurally inadequate sewers on Buchanan Street from Jackson Street to Washington 
Street and in Washington Street from Webster Street to Laguna Street. 

DES€RBrTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of constructing 15-inch and 12-inch diameter 
vitrified clay pipe (VCP) sewers on crushed rock bedding; sliplirung an existing sewer with 12-inch 
nominal size polyethylene pipe (PE.P); constructing concrete manholes, 10-inch diameter VCP culverts, 
and 6 or 8-inch diameter side sewer connections; videotaping existing active side sewers; repairing and/or 
replacing existing defective active side sewers; removing existing sewers and sewer structures; replacing 
frame and cover of existing catchbasin; plugging and filling existing sewer with slurry grout; constructing 
cut-off wall; handling, videotaping newly constructed main sewers; supporting, working around and 
protecting certain Water Department, Fire Department and other utility agency and company facilities in 
conjunction with the work under this contract, and all related and incidental work on Buchanan Street from 
Jackson Street to Washington Street, and Washington Street from Webster Street to Laguna Street. This 
work included all planning, design, and construction support services (under Job Order No. 1597N). 

APPROVALS: 

SSST*' f,nance Steven Carmichael 



Romaine A. Boldridge 



The invitations for proposals were faxed to eleven (1 1) MBE/WBE contractors on March 31, 1998. 



10 



Attachment I 
Hap,e 2 of 3 



Four (4) Quotations were received on April 2, 1998 as follows 
Firm 



Quote 
Amount 



1. A Ruiz Construction be. $282,965 10% 
(LBE/NfflE) 

San: Francisco, CA 

2. JMB Construction Inc. $307,460 10% 
(LBE/MBE) 

San Francisco. CA 

3. Marin&wp Construction $462,130 10% 
Services, Inc. 

(LBE/MBE) 

San Francisco, CA 

4. Willie Electric, Inc. $244,265 0% 
Oakland, CA 94607 



Quote Adjusted 

Preference Amountf) 



Rank 



$254,668.50 



$276,714.00 



$415,917.00 



$244,265.00 4(»») 



(*) For comparison of quotes after application of business enterprise preferences. 

(") Willie Electric Co.. Inc. did not produce acceptable bonds in their bid package according to the 

City Attorney's Office. They were therefore rejected as a non-responsive and non-responsible firm. 



Work is of lump sum and unit bid item type. 

Application of business enterprise preferences in accordance with Chapter 12D of the San Francisco 
Administrative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was $224,300.00. The original contract as awarded to A. Ruiz 
Construction was for $282,965.00. The final contract cost after adjustment for actual quantities used 
during construction is $261,627.00. 

Therefore, the cost of this project, including the change order, is estimated to be S305.277.00 

Bureau of Engineering (Planning, Design, and Construction Support) $23,650.00 

Bureau of Construction Management (Construction Inspection) $20,000.00 

Final Construction Contract Cost , $26 1.627.00 



Total Project Cost 



$305,277.00 



This project is part of the Clean Water Program's Repair and Replacement Program. Funds are available 
from the R&R Fund (Fund 5C/CPF/R&R, FAMIS Project No. CENRNRR967, Job Order No. 1597N). 

Af ftrmitrir Artinn 



11 



■ri-ttacnment I 
i^age j of 3 



Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Scrssiiik 

A. Ruiz Construction began the work on April 20, 1998 and completed it on July 17, 1998. 

CONTEXT OF THIS ACTION: 

On March 19, 1998 PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that 750 feet of the existing 16-inch diameter vitrified clay pipe sewers located in Buchanan 
Street from Jackson Street to Washington Street and Washington Street from Buchanan Street to Laguna 
Street were broken and had collapsed sections. Sewer Operations further requested the Bureau of 
Engineering to prepare an Emergency Contract to replace these sewers. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on March 20, 1998. The Declaration of Emergency has 
been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 



1. Resolution 

1 . Draft Board of Supervisors Resolution 






Contact Person: Mr. Norman Chan 


Phone: 554-8355 




cc: B. Lim C. Tang 

C. Jacobo F. Bongolan 


M. Williams 
P. Law 


P. Chen 
P. Scott 



12 



Attachment II 



Cost Breakdown for ( J.O. #1597N, Contract #CW-1 80E) 
Washington / Buchanan Streets Emergency Sewer Replacement 



Bureau of Engineering 



Cta**it>cator, 


Title 


Rate 


Hours 




Cost 


5504 


Project Manager II 


S 


92 


10 


S 


920 


5206 


Associate Civil Engineer 


$ 


75 


51 


S 


3,825 


5202 


Junior Civil Engineer 


1 


50 


124 


I 


6,200 


5366 


Civil Engineering Associate II 


1 


60 


146 


$ 


8,760 


5381 


Engineering Student Trainee II 


$ 


33 


44 


$ 


1,452 


1426 


Secretary 


S 


43 


58 


s 


2.494 












s 


23,651 










Hounded: 


$ 


23,650 



Bureau at Construction Management 



cLaarftcanon 


Title 




Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


$ 


100 


10 


s 


1,000 


5208 


Civil Engineer 


S 


80 


20 


s 


1,600 


5204 


Assistant CMI Engineer 


$ 


59 


157 


$ 


9.263 


8318 


Construction Inspector 


$ 


74 


110 


s 


8.140 



$ 20,003 

Rounded: $ 20,000 



Poat-K* Fax Note 7671 




d- \lxt |&» e> 




T * QAe*jie«- 


F ««" f*. T LAW 




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13 



Memo to Finance and Labor Committee 

February 3, 1998 Finance and Labor Committee Meeting 

Item 3 - File 99-0049 

Department: Mayor's Office of Community Development (MOCD) 

Item: Resolution approving the 1999 Community Development 

Program and authorizing the Mayor to apply for, receive and 
expend the City's 1999 Community Development Block 
Grant (CDBG) from the U.S. Department of Housing and 
Urban Development (HUD) estimated to be $25,123,000. The 
proposed resolution would also transfer and expend program 
income generated by the San Francisco Redevelopment 
Agency of up to $40,730,985 for a total 1999 CDBG Program 
of up to $65,853,985. The proposed resolution would also (a) 
approve expenditure schedules for recipient City 
departments and agencies, including indirect costs of 
$124,015, (b) determine that no environmental evaluation is 
required and (c) authorize the receipt and deposit of any 
funds in excess of the entitlement of the 1999 CDBG 
entitlement of $25,123,000 be placed in a Contingency Fund. 

Description: Refer to the Budget Analyst's separate report of January 29, 

1999 on the Mayor's proposed 1999 Community Development 
Program. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Item 4 - File 99-0078 



Department: 
Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Description: 



Mayor's Office of Community Development (MOCD) 

Resolution approving the 1999 Emergency Shelter Grants 
Program and expenditure schedule and authorizing the 
Mayor on behalf of the City and Count}- of San Francisco to 
apply for, accept, and expend an $891,000 entitlement under 
the Emergency Shelter Grants Program of the U.S. 
Department of Housing and Urban Development. 

$891,000 

April 1, 1999 through March 31. 2000 

U.S. Department of Housing and Urban Development (HUD) 
Emergency Shelter Grants Program (ESGP) 

The HUD Emergency Shelter Grants Program was first 
established under the Stewart B. McKinney Homeless 
Assistance Act in July, 1987. The program is designed (1) to 
assist in improving the quality of existing emergency shelters 
for the homeless, (2) to assist in making available additional 
emergency shelters, and (3) to assist in meeting the costs of 
operating emergency shelters in order to provide certain 
essential social services to homeless individuals so that those 
persons have access to the support services needed to 
improve their situations. 

The Mayor's Office of Community Development (MOCD) is 
responsible for administering and monitoring the Emergency 
Shelter Grants Program (ESGP). Funds from the ESGP are 
budgeted under five categories, three program categories 
(Essential and Social Services, Maintenance and Operating 
Expenses and Homeless Prevention Services), and two other 
categories, MOCD Administration and an Emergency Shelter 
Grants Pool. 

The MOCD advises that grant funds in the amount of 
$891,000 from the 1999 ESGP ($93,000 less than the 1998 
ESGP allocation of $984,000) would be allocated to 24 
projects (including administration and the grants pool) under 
the five categories identified above involving 16 non-profit 
homeless service providers and shelters. 

Descriptions of the 24 projects including administration and 
the grants pool selected for funding by MOCD are as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



ESSENTIAL AND SOCL\L SERVICES 

These grants would assist in funding staff at homeless 
shelters for shelter management and for the provision of 
social services to shelter residents. 

Asian Women's Shelter $36,856 

The grant would fund the salary of a Facilities Coordinator. 
The Asian Women's Shelter provides emergency shelter and 
support services to battered monolingual Asian women and 
their children. 

Catholic Charities of the Archdiocese of $25,000 

San Francisco/ Family Resource Center 
814 Mission Street, 3rd Floor 
The grant would be used to pay for 58 percent of the 
personnel costs of a case manager for the operation of a child 
care center for homeless families. 

Dolores Street Community Services $31,250 

938 Valencia Street 

The grant would be used to help fund the Case Manager 
position. Dolores Street Community Services provides 
emergency shelter and support services at three adult 
shelters. 

La Casa de las Madres (45,782 

The grant would be used to provide for a Women's Advocate 
and a Facility Assistant. La Casa de las Madres provides 
shelter and advocacy services, a 35-bed emergency shelter 
program, case management, information and referral 
services. 

Swords to Plowshares $31,400 

1063 Market Street 

The grant would help fund a part-time social worker and a 
part-time claims assistant. The Swords to Plowshares 
program provides outreach and legal services to homeless 
veterans and transitioning toward vocational training and 
employment. 

United Council of Human Services -_>.400 

2111 Jennings Street 

The grant would help pay a portion of the staffing at the 
Center. The United Council of Human Services provides free 
hot meals, clothing, and job referral and employment services 
to low-income and homeless people in the Bayview Hunters 

Point Community. 

Subtotal $19S.6S8 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



MAINTENANCE AND OPERATING EXPENSES 

These grants would pay basic operating expenses at 
homeless shelters and other homeless support organizations. 

Asian Women's Shelter $19,144 

location confidential 

This grant would pay for repairs and maintenance, 
insurance, telephone and utilities. 

Bar Association of San Francisco $17,491 

The Volunteer Legal Service Program (VLSP) 
955 Market Street, Suite 915 

Overhead expenses including repairs, insurance, rental of 
space, supplies, telephone, travel, printing and audit of their 
project activities. 

Central City Hospitality House - Orlando 
House $10,000 

290 Turk Street 

The grant would pay for utilities, telephone, insurance, 
repairs and maintenance. The Central City Hospitality 
House - Orlando House is a shelter for runaway and 
homeless youths ages 15 to 17 years. 

Central City Hospitality House $10,300 

146 Leavenworth Street 

The grant would pay for portions of various overhead costs 
including utilities, insurance, office supplies and rental of 
space. The Central City Hospitality House is an emergency 
shelter for homeless men. 

Dolores Street Community Services $9,750 

1249 Alabama and 24th Street 

The grant would pay for portions of the cost of rent, 
insurance, utilities, supplies and an audit of the program. 

Episcopal Community Services of $40,000 

San Francisco 
201 Eighth Street 

The grant would be used to pay for rent, and utilities. The 
Episcopal Community Services of San Francisco provides 
shelter, rehabilitation services, and case management 
services to homeless men and women. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Friendship House Association of $36,900 

American Indians 
80 Julian Avenue 
The grant would pay for rent, repairs and maintenance, 
insurance, audits, utilities, telephone, postage, and office 
supplies. The Friendship House Association of American 
Indians provides residential alcohol and drug abuse 
treatment services to American Indian women and men. 

Hamilton Family Center $ I ;,000 

1525 Waller Street 

The grant would pay for renting the program facility. 
Hamilton Family Center is a homeless family shelter that 
provides meals, preschool programs, on-site medical clinic, 
children's therapy, and family case management. 

La Casa de las Madres $31,518 

location confidential 
The grant would pay for the rental of the shelter. 

Larkin Street Youth Center - Diamond 
Youth Center (54,000 

536 Central Avenue 
The grant would pay for rent, repairs, utilities and telephone. 
The Larkin Street Youth Center - Diamond Youth Center 
provides emergency shelter and support services for 12 to 17 
year old runaways and homeless youths. 

St. Vincent de Paul Society $20,000 

Confidential Location 

The grant would be used to pay for rent at the Rosalie House, 
the agency's program for battered women and children. 
Rosalie House is an eight week, 20-bed facility for women 
and their children who are victims of physical, sexual, or 
emotional abuse. 

Swords to Plowshares $7,200 

1063 Market Street 
The grant would be used to pay rent, insurance, office 
supplies, MUNI fast passes to clients and to audit the 
program. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



United Council of Human Services S67.600 

1345 Ocean Avenue 

The grant would help pay for rent, insurance, repairs, office 
supplies, utilities, food, fuel for vehicles and an audit of the 
program. 



Subtotal $366,903 

HOMELESS PREVENTION SERVICES 

These grants would fund programs dedicated to preventing 
homelessness and to assisting the homeless in obtaining 
governmental benefits. 

American Red Cross $68,000 

Homeless Prevention Program 
1440 Harrison Street 

The grant would pay for one-time rental assistance for 
individuals and families facing exaction because of an 
inability to pay rent. The American Red Cross Bay Area - 
Homeless Prevention Program provides rental assistance to 
low-income San Francisco residents. 

Bar Association of San Francisco S42.509 

The Volunteer Legal Service Program (VLSP) 
955 Market Street, Suite 915 
The grant would partially pay for personnel costs for five 
employees that provide legal and related social services to 
traditionally underserved client groups that include low 
income San Francisco residents. 

Compass Community Services - (formerly 
Traveler's Aid of San Francisco) $50,000 

942 Market Street, 6th Floor 

The grant would help pay for hotel rooms for homeless 
families. Compass Community Services provides emergency 
shelter for homeless families. 



Subtotal $160,509 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

MOCD ADMINISTRATION S44.550 

The amount of $44,550 represents five percent of the total 
ESGP grant award of $891,000. This amount will partially 
fund the salaries of a program administrator (50%) and an 
accountant (25%) at the MOCD, for a combined .75 FTE of 
staff time, to administer the proposed grants. The amount of 
$44,550 for MOCD administration in 1999 represents a 
decrease of $4,650 or 9.5 percent from the 1998 budget 
allocation of $49,200. 

EMERGENCY SHELTER GRANTS POOL S120.350 

The Emergency Shelter Grants Pool is a pool to provide 
additional assistance for programs and related services for 
the homeless. Such program and services have not yet been 
determined. The Pool would be reduced by $94,650 from 
$215,000 in 1998 to S120,3. r .() in 1999. The $120,350 would be 
allocated to specific projects at a later time. 

TOTAL $S91,000 

Project Budget: 

Essential and Social Services (22.3°o of Total Grant) 

Amount 

Asian Women's Shelter S 36.856 

Catholic Chanties/St. Joseph's Village 25,000 

Dolores Street Community Sen-ices 31.250 

La Casa de las Madres 45.782 

Swords to Plowshares 3 1 .400 

United Council of Human Services 28.400 

Subtotal S198.688 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Maintenance and Operating Expenses (41.2% of Total Grant) 

Amount 

Asian Women's Shelter $19,144 
Bar Assoc, of San Francisco, Volunteer Legal 

Services Program 17,491 
Central City Hospitality House - Orlando 

House 10,000 

Central City Hospitality House 10,300 

Dolores Street Community Services 9,750 
Episcopal Community Services 

of San Francisco 40,000 
Friendship House Association of 

American Indians 36,900 

Hamilton Family Center 43,000 

La Casa de las Madres 31,518 
Larkin Street Youth Center - Diamond 

Youth Center 54,000 

St. Vincent de Paul Society 20,000 

Swords to Plowshares 7.200 

United Council of Human Sendees 67.600 

Subtotal • $366,903 

Homeless Prevention Services (18.0% of Total Grant) 

Description 

American Red Cross Bay Area SF $68,000 

Bar Assoc, of San Francisco, Volunteer Legal 

Services Program 42,509 

Compass Community Services 50.000 

Subtotal $160,509 

MOCD Administration (5.0% of Total Grant) 

Subtotal $44.550 

Emergency Shelter Grants Pool (13.5% of Total Grant) 

Subtotal $ 120.350 

GRAND TOTAL $891.000 

Required Match: $891,000 will be provided by the Department of Human 
Services (DHS) from General Fund monies approved in the 
FY 1998-1999 DHS Budget. A description of these funds is 
provided in Comment No. 1. 

Indirect Costs: None 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Comments: 1. Mr. Jon Pon of MOCD reports that, in order to comply 

with the required match of local funds, a total of $891,000 
has been allocated from FY 1998-99 General Fund monies 
approved in the budget of the Department of Human 
Services. These include: 

American Red Cross Bay Aj $ 73,500 

Central City Hospitality House 200,000 

Compass Community Services 531,769 

Dolores Street Community Services 85,731 

Total $891,000 

2. The proposed grant allocation of $891,000 for 1999 
represents a $93,000 or 9.45 percent decrease over the 1998 
budget allocation of $984,000. 

3. The MOCD reports that it conducted a Request for 
Proposal (RFP) process in June of 1998 to homeless service 
providers and shelter operators for the 1999 Emergency 
Shelter Grants Program. In July of 1998, the MOCD 
received 20 applications requesting $1,273,868 in ESGP 
funds in response to the RFP process. A total of 24 project 
applications were selected. These projects are the subject of 
this report. 

4. The MOCD has prepared a Disability Access Checklist, 
which is on file with the Clerk of the Board. 

5. Four projects received new or increased funding in 1999 
that total $106,300. These are in addition to approved 
funding during 199S. We consider the approval of new and 
increased funding to be policy matters for the Board of 
Supervisors. The four projects subject to new or increased 
funding are as follows: 



Protect 

BASF/Volunteer Legal Services Program 

Episcopal Community Services of San Francisco 40.000 

Friendship House Association of American 

Indians 
United Council Of Human Services 

Totals 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



1999 


199S 


Amount of Nev 


Proposed 


Funding 


or Increased 


Funding 


Allocation 
S 


Fundine 


S60.000 


S60.000 


3 40.000 


31.000 


9.000 


36.900 


24.600 


12.300 


96.000 


71.000 


25.000 


S232.900 


S126.600 


S106.300 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

6. Because $120,350 has been set aside for future projects in 
the Emergency Shelter Grants Pool, that will be allocated at 
a later time, the funds should be reserved until MO CD 
provides the Finance Committee with budget details as to 
how these monies will be allocated. 

Recommendations: 1. Approve funding in the amount of $784,700 ($891,000 
requested less the increased funding level of $106,300 for 
new and existing projects). 

2. In accordance with Comment No. 5 above, we consider 
approval of $106,300 in new and increased funding levels to 
be a policy matter for the Board of Supervisors. 

3. In accordance with Comment No. 6, reserve $120,350 set 
aside in the Emergency Shelter Grants Pool pending further 
information by MOCD submitted to the Finance Committee 
of budget details and related allocations. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Item 5 - File 99-0079 

Department: 

Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Project: 
Description: 



Mayor's Office of Housing (MOH) 

Resolution authorizing the Mayor to apply for, accept and 
administer a grant from the U.S. Department of Housing 
and Urban Development (HUD) for the HOME 
Investment Partnership Program authorized under Title 
II of the National Affordable Housing Act of 1990 and 
approving the HOME Program description as described in 
the Preliminary- 1999 Action Plan for the City and 
County. 1 Indirect costs associated with the acceptance of 
these grant funds will be paid by Community 
Development Block Grant (CDBG) funds. 

Not to exceed $7,079,000 

April 1, 1999 to March 31, 2000 

U.S. Department of Housing and Urban Development 
(HUD) 

Home Investment Partnership (HOME) Program 

The HOME Program is authorized under Title II of the 
National Affordable Housing Act of 1990 (Public Law 
Number 101-625). The Act provides funds for the 
acquisition, rehabilitation and development of privately- 
owned affordable housing. 

In August, 1994, HUD issued regulations requiring that 
beginning in 1995, a Consolidated Plan be developed for 
(a) the HOME Program, (b) the Housing Opportunities for 
People With AIDS (HOPWA) Program and (c) the 
Community Development Block Grant Program (CDBG). 
In response, the MOH has developed a "Preliminary 1999 
Action Plan for the City and County of San Francisco, 
Draft for Public Review." The MOH advises that the 



1 The "Preliminary 1999 Action Plan for the City and County of San Francisco, Draft for 
Public Review," dated January 15, 1999, contains the City's plans and programs for 
privately-owned housing, totaling $53,546,075, as shown in the following pages. The "final" 
1999 Action Plan will reflect the program funding requests approved by the Board of 
Supervisors in this subject HOME Program legislation, and legislation being considered by 
the Finance Committee (see Files 99-0049 and 99-0078 of the Budget Analyst's report to the 
Finance Committee of February 3, 1999). 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Ik 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Preliminary 1999 Action Plan, when finalized to reflect 
the program funding to be approved by the Board of 
Supervisors for the three programs enumerated above, 
will function as the MOH grant application for HOME 
Program funding from HUD. MOH and MOCD must 
submit the 1999 Action Plan to HUD by February 15, 
1999. According to the Preliminary 1999 Action Plan for 
privately-owned housing development and administrative 
costs, the MOH anticipates receiving $7,077,000 2 for the 
HOME Program, or $492,000 more than the 1998 
allocation of $6,585,000. 

The Preliminary 1999 Action Plan for privately-owned 
housing developments in San Francisco totals 
$53,546,075, including the proposed $7,077,000 HOME 
grant allocation and the following other sources of 
housing funds: 

HUD HOME Funds: 

Proposed New 1998 Funds (Subject of this request) $7,077,000 

Less funds for administrative costs 855,900 

Subtotal HOME Funds 6,221,100 

Other Federal Sources 

Community Development Block Grant (CDBG) 5,673,115 

CDBG Program Income 1 1 78,545 

HUD HOPWA funds 1.150.000 

Subtotal Other Federal Sources 8,001.660 

Local Sources 

Proposition A (Affordable Housing and Home 

Ownership General Obligation Bond Funds to 

be requested) 19,798,000 

Tax Increment Funds: 

Carry-forward Funds From 1998-99 11.084,297 

Hotel Tax Funds 5,000,000 

Affordable Housing Fund (OAHPP Program) 2.348.018 



2 The final amount approved by HUD is $7,077,000 or $2,000 less than the not to exceed 
amount of $7,079,000 contained in the proposed resolution and includes an administrative 
allocation of $855,900. as shown in the "Budget" section of this report. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Home ownership Assistance Loan Payments $ 993,000 

Code Enforcement Rehabilitation Fund (CERF) 

(CERF funds are received from the State Franchise 

Tax Board as a result of disallowed income tax 

Deductions and penalties from taxpayers with 

San Francisco Housing Code violations) 100.000 

Subtotal Local Sources $39,323,315 

Total Projected Funds for Privately-Owned 
Housing Developments in 1999 $53,546,075 

The proposed total 1999 HOME Program funds of 
$7,077,000 represents approximately 13.2 percent of the 
total $53,546,075 in projected funds for privately -owned 
housing development in San Francisco. These funds are 
dedicated for privately-owned housing development. None 
of these funds would be used by the San Francisco 
Housing Authority or for other public housing projects. 
The HOME Program funds of $7,077,000, excluding the 
administrative costs for MOH, would be allocated by the 
MOH to private or non-profit developers for privately 
owned housing. 

Procedures for allocating HOME Program funds were 
approved by the Board of Supervisors in August, 1992 
(File 68-92-4.1) and revised in February, 1994 (File 68-94- 
7). (These procedures outline broad criteria and a process 
to follow for allocating the HOME Program funds, such as 
how to notice the availability of housing funds to 
interested parties, how to evaluate the funding proposals, 
specific underwriting criteria, etc.). Projects which are 
eligible for HOME funding are as follows: 

1. Projects, which are funded for capital construction or 
rehabilitation of housing units to be owned and 
managed by the applicant, must be occupied by 
households with incomes that do not exceed 60% of the 
median income as established by HUD. 

2. First-time home ownership assistance must be 
provided only to low income persons with household 
incomes that do not exceed 80% of median income as 
established by HUD. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

HOME regulations require that a minimum of 15 percent 
of the City's proposed 1999 HOME allocation of 
$7,077,000 or $1,061,550 be reserved for housing 
developed, sponsored or owned by non-profit Community 
Housing Development Organizations (CHDOs). According 
to Mr. Joe LaTorre of MOH, nearly all of San Francisco's 
affordable housing development efforts in recent years 
have been conducted in collaboration with local 
community-based non-profit housing development 
corporations, several of which have satisfied HUD 
requirements to qualify as CHDOs. CHDOs are expected 
to continue performing the roles that non-profit housing 
development corporations have traditionally performed in 
San Francisco, including acquisition and rehabilitation of 
existing buildings, acquisition of sites and development of 
new housing and ownership and management of 
subsidized developments 

Budget: The proposed $7,077,000 in HOME Program funds for the 

one-year period of April 1. 1999, through March 31, 2000, 
would be expended as follows: 

Item Amount 

Community Housing Development Organization 
(CHDO) Rehabilitation of an estimated 100 
housing units: 

Acquisition/Substantial Rehabilitation (requiring 

more than $25,000 per unit) of housing units 

for low-income households. $2,860,517 

Acquisition/Other Rehabilitation (requiring less 

than $25,000 per unit) of housing units for 

low-income households. 1.500,000 

Other Activities: 

New Construction of Housing for low income 

households (these funds would be allotted to 

The Hamilton Family Center, a 70 bed housing 

Development for formerly homeless families.) 1.824.109 

Tenant-Based Rental Assistance (Catholic Charities) 36.474 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item Amount 

Administrative Expenses: 

Mayor's Office of Housing 

Administrative Expenses $524,905 

CHDO Administrative Expenses 150,000 

Catholic Charities Administrative Expense 13,526 

Other Administrative Expenses 167,469 

Subtotal Administrative Expenses 855,900 

Totals $7,077,000 

Required Match : $1,769,250 (25 percent of the $7,077,000 grant total). 

Indirect Costs: Indirect costs of $124,015 for General City purposes will 

be paid from CDBG funds for the HOME Program and the 
CDBG Program. 

Comments: 1. According to Mr. LaTorre, the 25% matching fund 

requirement of $1,769,250 is anticipated to be provided 
from Hotel Tax funds. In 1999, the MOH is anticipating 
receiving an estimated total of $5 million in Hotel Tax 
funds, which was appropriated in the Fiscal Year 1998-99 
budget to be used for the development of low-income 
housing for seniors and handicapped residents. Mr. 
LaTorre reports that $1,769,250 of these Hotel Tax 
expenditures will be used as matching funds for the 
proposed HOME Investment Partnership Program grant. 

2. HOME regulations limit expenditures for payment of 
administrative and planning costs of the HOME Program 
to an amount of HOME funds that is not more than ten 
percent of the fiscal year HOME basic formula allocation, 
except for the $150,000 in CHDO administrative 
expenses. As noted in the Budget Section above, the 
proposed resolution would authorize administrative costs 
of $855,900, including $150,000 to be allocated in equal 
amounts of $50,000 to the Chinese Community Housing 
Corporation, the Mission Housing Development 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Corporation, and the Tenderloin Neighborhood 
Development Corporation (the Community Housing 
Development Organizations). MOH is requesting a 
budget of $705,900 (Mayor's Office of Housing 
Administrative Expenses of $524,905 and Other 
Administrative Expenses of $180,995), which is $1,800 
less than the maximum allowable amount of $707,700, for 
administration of the HOME Program. The proposed 
$855,900 for administrative expenses are as follows: 

HOME Administrative Budget 

Mayor's Office of Housing Administration 

(See Attachment I) $524,905 

Catholic Charities $13,526 

Other Administrative Expenses 167,469 180,995 

Subtotal Administrative Expenses $705,900 

Community Housing Development 

Corporation's Administrative Expenses 150,000 

Total $855,900 

The MOH administrative budget of $524,905 includes 4.9 
positions for the MOH. Attachment I lists the positions 
and the salary amounts for each position. 

The Other Administrative Expenses of $167,469 are as 
follows: 

City Attorney $ 47,469 

Environmental Review Consultant J ".000 

City Planning 25.000 

Total $167,469 

The proposed administrative budget of $524,905 includes 
a .50 FTE 9774 Sr. Community Development Specialist. 
However, the MOH budgeted a full years salary of 
S6 1.309 for this position instead of the $30,862 which is 
required for the .50 FTE position. (The remaining .50 FTE 
salary funds for this position is budgeted in the 
Community Development Block Grant Program.) 
Accordingly the proposed HOME budget should be 
reduced as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Salary $30,444 

Fringe Benefits 6,698 

Less Salary Savings (1,857) 

Add Negotiated Increase 1,486 

Total Reduction $36,771 

3. Section l.C. of MOH Criteria and Procedures for 
allocating HOME Program funds requires that the 
Director of the Mayor's Office of Housing submit an 
Annual Report, due on March 31 of each year for the 
preceding calendar year, to the Board of Supervisors 
providing an accounting of all HOME program funds 
received by the City and how the funds were expended, 
including specific project information. According to Mr. 
LaTorre, the most recent Annual Report, for calendar 
year 1997, was submitted to the Board of Supervisors on 
March 30, 1998. 

4. In accordance with procedures developed by the MOH 
and previously approved by the Board of Supervisors, 
loans to private developers may be interest bearing or 
interest free and loan principal to the private developers 
may be deferred. The terms under which interest and/or 
principal are paid by the developer are determined by the 
Mayor based on the financial feasibility of each project. 
According to Mr. LaTorre, the reason that the Mayor may 
decide not to charge interest to private developers or may 
decide to defer loan repayments due from private 
developers is that private developers may have agreed to 
establish very low rents in their privately-developed 
affordable housing, thereby resulting in the developers' 
inability to afford to make the total required interest 
and/or principal payments. The attached memorandum 
(Attachment II) from Mr. LaTorre explains how MOH will 
document financial information provided by private 
developers which could result in the Mayor deciding (a) 
not to charge interest to private developers, and/or (b) 
permitting private developers to defer their loan 
repayments to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Recommendations: 1. Reduce the proposed MOH Administrative budget by 
$36,771 from $524,905 to $488,134 as shown in comment 
2 above to increase the level of funding for other eligible 
HOME activities. 

2. Approval of the proposed resolution is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Attachment I 



Mayor's Office of Housing HOME Administrative Expenditure Schedule 1999 



Pgm | Grant 


Mat 


ID 


Line Item 


Description 


Sub-Object 


Administration 






MOHM98 


21H 




Class 


Title 


FTE 








MOHM98 


21H 




1369 


Special Assistant X 


3.10 


S 151,552 






MOHM98 


21H 




1371 


Special Assistant XIV 


0.50 


S 25,369 






MOHM98 


21H 




1373 


Special Assistant XII 


0.50 


S 40,872 






MOHM98 


21H 




1377 


Special Assistant Program Development 


0.10 


S 9,936 






MOHM98 


21H 




1632 


Senior Account Clerk 


0.20 


S 8,413 






MOHM98 


21H 




9774 


Sr Community Development Specialist 


0.50 


S 61,309 
























MOHM98 


2IH 




Personnel 


Labor Costs 


4.90 


S 297,451 






MOHM98 


21H 




Personnel 


Labor Costs Fringes @-22 




S 65,439 






MOHM98 


21H 




Personnel 


Labor Costs Total 




S 362,890 


412184 




MOHM98 


21H 




Personel 


Salary Savings @.05 




S (18,145) 


-20609 






21H 




Personel 


Negotiated Increases (2j.04 




S 14,516 
























MOHM98 


21H 




Conferences & Travel 


Conference Travel 




S 5,000 


S 5,000 




MOHM98 


21H 




Dray age/Frei ght 


File Safe 




S 500 


$ 500 




MOHM9S 


21H 




Equipment 


Lease Photocopier 




S 5,000 


S 5,000 




MOHM98 


21H 




Equipment 


Maintenance & Repair 




S 1,000 


S 1,000 




MOHM98 


21H 




Equipment 


Auto Fuel & Maintenance 




S 1,000 


$ 1,000 




MOHM98 


21H 




Legal & Display Advertising 






S 1,000 


$ 1,000 




MOHM98 


21H 




Memberships 






S 1,500 


$ 1,500 




MOHM98 


21H 




Postage 






S 2.500 


S 2,500 




MOHM98 


21H 




Printing 






S 5,000 


S 5,000 




MOHM98 


21H 




Rental Space 


25 Van Ness Lease 




S 70,644 


S 50,000 




MOHM98 


21H 




Supplies 


Office Supplies 




S 5,000 


S 5,000 




MOHM98 


21H 




Telecommunications 


Telephone Services 




S 5,000 


S 5,000 




MOHM98 


21H 




Training 






S 2,500 


S 2,500 






















MOHM98 


21H 




TOTAL 






S 464,905 


$ 476,575 






















MOHM98 


21H 




Professional Services 


Environmental Review 




S 15,000 


S 15,000 




MOHM98 


21H 




Professional Services 


City Planning 




S 10,000 


S 10,000 




MOHM9S 


21H 




Professional Services 


City Attorney 




S 25,000 


S 25,000 




MOHM98 


21H 




Professional Services 


Real Estate 










MOHM98 


21H 




Professional Services 


ADA 










MOHM98 


21H 




Professional Services 


Other 




S 10,000 


S 10,000 






















MOHM98 


21H 




Total HOME 






S 524,905 


S 536,575 



Page 1 
32 



12/16/98 



01/25/99 MON 17:44 FAI 415 252 3140 MA* OR - HOISIM* . 

Attachment II 



MEMORANDUM 




MAYORS OFFICE OF HOUSING 

January 25, 1999 

TO: Bill Courtright, Budget Analyst 

FROM: Joe LaTorre 

SUBJECT: Determination of Eligibility for Repayment and/or Interest Deferral or 
Forgiveness for HOME Program Loans 



Per your request for additional information, please note that the Criteria and Procedures for 
Allocating Home Program Funds approved by the Board of Supervisors in January 1994 
provide that The Mayor shall determine the terms under which interest and/or principal 
shall be paid by Developer. ... For all HOME-assisted projects other than those funded 
under the RMF Program, deferred loans may be structured so as to require payment at the 
end of the Term, or to be forgiven, depending on the financial feasibility of the project. 
RMF loans may not be forgiven under any circumstances.* 

Financial feasibility is based on the proposed structure of rents and operating expenses of 
the development and upon the availability and requirements of other funding sources for 
the development In most cases, MOH seeks to regulate rents at as low a level as possible, 
which precludes the possibility of payment of debt service (whether principal or interest). 
In addition, restricted rents limit the market value of the property, meaning funds might not 
be available at the end of the loan Term to repay the loan. 

Documentation of the proposed rent structure, operating budget, and sources and uses of 
development funds is provided to MOH by the Developer in its application for funds. 
These budgets are reviewed by MOH staff and evaluated in staff analysis provided to the 
Housing Development Loan Committee established by the Criteria and Procedures . Staff 
will recommend a proposed structure for interest and principal repayment to the 
Committee and, if approved, to the Mayor at the time the development is approved. 

Upon completion of the development, the Developer is monitored annually regarding its 
rents and operating budget to ensure that the rents are within the regulated amount and 
that the property is being maintained in accordance with program requirements. The 
results of this monitoring is included in MOH's Annual Performance Report to HUD for the 
HOME and other federal programs. 



25 VAN NESS AVENUE, SUITE 600 • SAN FRANCISCO, CA 94102 • (415)252-3177 • FAX (415) 252-3140 

33 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item 6 - File 98-1561 



Department: 



Item: 



Description: 



Comments: 



Police Department 

Fire Department 

Department of Parking and Traffic 

Resolution waiving $949.74 in fees to be charged for 
temporary street closing in connection with the 
Vietnamese Tet Festival held in January of 1998. 

On January 25, 1998, the Vietnamese Community Center 
of San Francisco (VCC), a non-profit organization, held 
the Tet Festival. The Interdepartmental Staff Committee 
on Traffic and Transportation (ISCOTT) 1 , in accordance 
with Administrative Code Section 2.70-6, granted VCC a 
permit to temporarily use Larkin Street between Eddy 
Street and O'Farrell Street and Ellis Street between Polk 
Street and Hyde Street in the Tenderloin for the purpose 
of conducting the Festival. According to Ms. Cindy 
Shamban of the Department of Parking and Traffic, VCC 
paid the required fee of $80 for a street festival permit. 

1. Attachment I is an invoice provided by Ms. Shamban 
that bills the VCC the total of $949.74 in costs incurred 
by the City in connection with the Tet Festival, including 
$176 2 in personnel costs incurred by the SFPD, $481.46 in 
personnel costs incurred by the DPT, and $292.28 for 
application and inspection fees charged by the Fire 
Department. 

2. Attachment II provided by Mr. Hoanh Bui of VCC 
contains a statement of the revenues and expenditures 
related to the Tet Festival held on January 25, 1998. 
According to the statement provided by Mr. Bui, the Tet 
Festival lost $4,066.13, based on revenues of $15,777.53 
and expenses of $19,843.66, and therefore the VCC does 



1 The Interdepartmental Staff Committee on Traffic and Transportation (ISCOTT) i s the entity that 
coordinates responses to traffic and transportation issues throughout the City. ISCOTT consists of 
representatives of the City's Departments of Parking and Traffic, Public Works, and City Planning, 
the Police and Fire Departments, and the Municipal Railway and the Port. 

2 According to Lieutenant Don Carlson of the Police Department, the Department's actual personnel 
cost incurred during the January 25, 1998 Tet Festival was $440. However, in accordance with 
Section 2.70-6 of the Administrative Code, the Police Department may only bill street festival 
sponsors 40 percent of the actual cost incurred or $2,500, whichever is lower. In this case, 40 percent 
of $440 is $176. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



34 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

not have funds available to pay the S949.74 in fees billed 
by the City, according to Mr. Bui. 

3. The proposed resolution incorrectly states that the Tet 
Festival was held in February of 1998. The actual date 
on which the Tet Festival was held was January 25, 1998. 

Recommendations: 1. In accordance with Comment No. 3, amend the 
proposed resolution by substituting the date of January 
25, 1998 for February 1998. 

2. Approval of the proposed resolution, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



«. i- Lamuieu i_ J. 



February 24, 1998 

Vietna 

Temporary Street Closing 




Traffic Engineering Division Vietnamese Tet Festival 

City and County of San Francisco 

WILUE LEWIS BROWN, JR., MAYOR 

BILL MAHEFt. EXECUTIVE DIRECTOR 

Mr. Huynh Khac Minh 
Vietnamese Community Center 
434 Ellis Street 
San Francisco, CA 94102 

Dear Mr. Minh: 

Pursuant to ordinance 383-95, please submit a check for $949.74 to: "Department of 
Parking and Traffic" to cover the fees for the above mentioned event. 
The fees are itemized below: 






Police Department fee: 


$176.00 


DPT Enforcement fee: 


$481.46 


Fire Department fee: 


$292.28 


TOTAL: 


$949.74 


This amount is now due and payable to: 





Department of Parking and Traffic 
Division of Traffic Engineering 
25 Van Ness Avenue, Suite 345 
San Francisco, CA 94102 
Attn: Cindy Shamban 

If you have any questions, please contact Cindy Shamban at 554-2341 . Thank you for 
your cooperation. 

Very truly yours, 

Bond M. Yee ^ - 

Bureau Chief, Traffic 

BMY:CBS:c:\bms\vietcete. 1 98 



(415)554-2300 FAX (415) 554-2352 25 Van Ness Ave., Suite 345 ^r San Francisco, CA 94102-4576 



OCT-07-1993 15=11 



FRB SF ITS 



P. 62/2:2 
Attachment II 



THE VIETNAMESE COMMUNITY CENTER OF SAN FRANCISCO 

601 VAN NESS AVENUE SUITE I 

SAN FRANCISCO, CA 94102 - (415) 346-1230 

THE VIETNAMESE LUNAR NEW YEAR TET FESTIVAL ON 25-1-1998 
STATEMENT OF REVENUE AND EXPENSE 



REVENUE 



Donations S5.362.38 

Booths rental S3.375.00 

Games booths 52,850.50 

Flower booths S 189.65 
Grant from Mayor's Office 

of Children, Youth and their Families $4,000.00 

Total Revenue 



$15,777.53 



EXPENSES 



Rent booths, stage and portable toilets 


S4.641.15 


Tax collector 


S 75.00 


Traffic Dept. (For handicaped signs) 


$ 20.00 


Health Dept. 


S 50.00 


Closing streets fees 


S 80.00 


Printing raffles tickets and coupons 


S 336.35 


Insurance 


S 450.00 


Lucky money for children (red envelop) 


S 400.00 


Streets sweeping 


S 600.00 


Prices for 4 game booths 


$1,379.39 


Singers 


$2,350.00 


Special magarine for TET 


$1,050.00 


Advertising 


$1,337.00 


Photographer and video 


S 343.37 


Marketing 


$ 600.00 


Soft drink and food for main booth 


$ 432.00 


Dragon dance 


$ 400.00 


Flower for sale 


S 400.00 


Free food and drink for children 


$ 937.00 


Free games for children 


$2,500.00 


Miscellaneous (office supplies, decorations 




and food for 108 volunteers) 


$1,402.40 



Total Expenses 



$19,843.66 



EXCESS EXPENSES OVER REVENUE 



S 4,066.13 



TOTAL P. B2 



37 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item 7 - File "99-0076 



Department: 
Item: 



Description: 



Comments: 



Real Estate Department 

Resolution authorizing the vacation and sale of surplus 
City-owned property (100 square foot sewer easement) at 
the southeast corner of Fifth and Bluxome Streets, 
portion of Assessor's Block 3786, Lot 17. 

The 394 Townsend Associates, L.L.C. owns the surface 
rights to the subject property and wishes to purchase the 
City sewer easement associated with the site in order to 
develop a live- work housing project on site consisting of 
three buildings with 20 work-live units in each building. 
The surface of this property is currently vacant. 

Mr. Robert Haslam of the Real Estate Department 
advises that the subject 100 square foot sewer easement 
on the southeast corner of Fifth and Bluxome Streets (see 
Attachment) has a nominal fair market value of $2,500 
and is under the jurisdiction of the PUC. PUC Resolution 
No. 98-0312 states that the subject property is no longer 
needed for present or prospective purposes, and 
recommends that the sewer easement be sold to 394 
Townsend Associates, L.L.C. for the sum of $2,500 
provided the developer shall also pay a $3,500 processing 
fee to the Real Estate Department, for a total of $6,000. 
Mr. Haslam states that 394 Townsend Associates, Inc. 
will pay the City a total of $6,000 when the corporation is 
presented with the deed to the subject property. 

In a letter dated August 28, 1998, the City Planning 
Department found that the proposed vacation of this 
sewer easement would (a) provide appropriate additional 
infill housing 1 in this established neighborhood, (b) 
increase the availability of units suitable for special user 
groups with special housing needs and (c) be categorically 
exempt from environmental review. In addition, the letter 
noted that the project has been reviewed for consistency 



1 According to Ms. Cathy Bauman of the City Planning Department, "infill housing" is new housing 
construction in an established residential neighborhood, most often on (1) vacant sites which are not 
designed for open space, (2) sites where nonconforming uses have been terminated, (3) sites above 
commercial development in neighborhood shopping districts and (4) sites with buildings that cannot 
feasibly be rehabilitated. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



38 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



with the Eight Priority Policies of Planning Code Section 
101.1. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



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40 



.. 3 ^>e 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item 8 - File 98-0077 



Departments: 



Item: 



Location: 



Department of Real Estate (DRE) 

Resolution (1) authorizing . and approving a new- 
Management Agreement for a cafe on the main floor of 
City Hall in the North Light Court of City Hall between 
the City and Events Management Inc., dba McCall and 
Associates; (2) ratifying certain acts in connection with 
the proposed Management Agreement; and (3) ratifying 
certain modifications in a separate Management 
Agreement with L & L, a partnership, an agreement 
which had been previously approved by the Board of 
Supervisors on December 7, 1998, for the operation of a 
cafe, the City Hall Cafe, located on the ground floor of 
City Hall. 

Main floor in the North Light Court of City Hall at 1 Dr. 
Carlton B. Goodlett Place, San Francisco 94102 



Purpose of 

Management 

Agreement: 



Owner: 
Manager: 

Term of Lease: 



To permit operation of a cafe at City Hall (the "Light 
Court Cafe") on the main floor of the City Hall building, 
in the North Light Court of City Hall. According to Mr. 
Mark Zuffo of the DRE, through a management 
agreement, as opposed to a lease agreement, the City has 
more control over the operation of the cafe and an easier 
and quicker ability to terminate the agreement upon 
default. However, according to Mr. Jesse Smith of the 
City Attorney's Office, the economic arrangement in 
regard to the Light Court. Cafe resembles a lease 
agreement more than a management agreement. 

City and County of San Francisco 

Events Management Inc., dba McCall and Associates 
("McCall and Associates") 

Five years, commencing January 4, 1999 and terminating 
January 3, 2004. 



Right of Termination: Both the City and McCall and Associates would have a 

right to terminate the proposed management agreement 
within the first 6 months (the "Trial Period"). 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



41 



Memo to Finance and Labor Committee 

February 3. 1999 Finance and Labor Committee Meeting 

Right of Renewal: McCall and Associates would have an option to extend the 

term of the lease for one additional 5-year period. 

Square Footage: According to Mr. Steve Nelson, Director of Administrative 

Services, the space to be used under the proposed 
Management Agreement consists of approximately 3,000 
square feet on the main floor of City Hall in the North 
Light Court, to be shared by McCall and Associates and 
any other catering services as authorized by the 
Department of Administrative Services. The proposed 
space consists of a seating area accommodating at least 
48 persons and counter space for serving food and 
beverages. Additionally, a catering support room behind 
the counter would be used by McCall and Associates. 
This catering room consists of an additional 300 to 400 
square feet, according to Mr. Nelson. No doors, 
partitions, or locks would separate the Light Court Cafe 
from the rest of the North Light Court, which covers 7,500 
square feet. 

Rental Payments to be 

made by McCall and 

Associates to the City: According to Mr. Zuffo and Mr. Steve Legnitto of the 

Department of Real Estate, both the base rent and the 
estimates of revenue (at 7 percent of gross revenue) to be 
paid by McCall and Associates to the City are still 
undetermined because (a) no prior record of sales exists 
for a cafe the North Light Court and (b) McCall and 
Associates' level of usage of the subject space, which is to 
be shared among different catering services and for 
different City Hall events, is still undetermined. Thus, in 
order to arrive at any prevailing market rate, the DRE 
will need to evaluate the level of business generated at 
the Light Court Cafe in the following months through a 
staff appraisal and will need to determine the precise 
level of usage of the shared space that is properly 
allocable to the Light Court Cafe. 

For Months 1 through 6 (the "Trial Period"), McCall and 
Associates would pay the City 7 percent of gross revenues. 
No base rent would be paid during this Trial Period. As 
noted above, the Department of Real Estate is unable to 
estimate the monthly gross revenues from the proposed 
cafe operation and the estimated resulting rental 
revenues payable to the City. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and. Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



For Montb 7 through the expiration of the initial five-year 
term of the proposed Management Agreement, McCall 
and Associates would pay the City 7 percent of gross 
revenues plus the base rent at the prevailing market rate 
as determined by the DRE based on a staff appraisal that 
would consider the level of business generated at the 
Light Court Cafe. 

If the option to extend the proposed Management 
Agreement for a 5-year period were exercised, then 
McCall and Associates would pay the City a percentage of 
gross revenue plus the base rent, based on the prevailing 
market rate to be determined by the DRE at that time 
based on a staff appraisal that would consider the level of 
business generated at the Light Court Cafe. 



Utilities Provided 
by City: 

Janitorial Services 
by McCall and 
Associates: 



Description: 



The City will pay for all utilities. 



McCall and Associates would be responsible for janitorial 
services at the leased space. 

Proposed Light Court Cafe Services and Operation 

Under the proposed Management Agreement with McCall 
and Associates, the Light Court Cafe would provide 
"upscale light faire food from behind the historic counter" 
in the North Light Court, consisting of coffee, espresso, 
pastries, juices, sodas, and beer and wine after 5 p.m. No 
items would be cooked on the premises, with all cooking 
and baking to be performed off-site. Food and beverages 
served within the proposed space would be required to be 
served using china or glass utensils. The hours of 
operation would be 11:00 a.m. through 6:00 p.m. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

A3 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Differences Between the Light Court Cafe (on main 
floor of City Hall) and the City Hall Cafe (on ground 
floor of City Hall) 

Currently, the Light Court Cafe operates on the main 
floor of City Hall, and the City Hall Cafe operates on the 
ground floor of City Hall. 

According to Mr. Zuffo, although both cafes are open to 
the public, the proposed Management Agreement with 
McCall and Associates pertaining to the proposed Light 
Court Cafe on the main floor of City Hall provides for a 
more upscale cafe than does the previously approved 
Management Agreement with L & L for the City Hall 
Cafe, which is located in a larger area on the ground floor 
of City Hall and which operates as a cafeteria. 

Under Section 6.1 of the proposed Management 
Agreement with McCall and Associates, the Light Court 
Cafe would serve beer and wine after 5 p.m., which the 
City Hall Cafe does not serve at any time. Also under 
Section 6.1 of the proposed Management Agreement with 
McCall and Associates, all food and beverages must be 
served on china or glass utensils, and may not be served 
using plastic flatware or paper plates, as are used in the 
City Hall Cafe on the ground floor. Finally, under Section 
6.2 of the proposed Management Agreement with McCall 
and Associates, the Light Court Cafe must maintain the 
hours of operation between 11:00 a.m. through 6:00 p.m., 
whereas the City Hall Cafe on the ground floor maintains 
the hours of operation between 7:00 a.m. and 4:00 p.m. 
Mr. Legmtto explains that a provision exists for McCall 
and Associates to extend the hours of operation to after 
6:00 p.m., which might be exercised in the future with 
approval from the City Hall Building Manager, under the 
Department of Administrative Services. 

Utilization of Subject Space 

According to Mr. Zuffo and Mr. Legmtto, under the terms 
of the proposed Management Agreement, McCall and 
Associates is required to purchase and pay for all 
necessary equipment which it needs in order to operate 
the Light Court Cafe. The DRE could not provide an 
estimate of such equipment costs. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



According to Mr. Zuffo, McCall and Associates currently 
hires two employees to work at the proposed Light Court 
Cafe and are obligated under the Management Agreement 
to properly staff the Light Court Cafe. 

Mr. Zuffo estimates that the current seating capacity in 
the dining space of the Light Court Cafe is 48, but the 
maximum number is under the control of the Building 
Manager. Under the proposed Management Agreement, 
McCall and Associates would be required to vacate both 
the dining space and counter space when other catering 
preparations for City Hall events, as authorized by the 
Department of Administrative Services, are scheduled in 
the subject area of the Light Court Cafe. 

Modifications to the L & L Agreement 

As previously noted, the Management Agreement with L 
& L, a partnership, for the operation of the City Hall Cafe 
on the ground floor of City Hall was approved by the 
Board of Supervisors on December 7, 1998. (Resolution 
No. 1017-98). 

According to Mr. Zuffo, on January 4, 1999, in the effort 
to have L & L operate the City Hall Cafe by that opening 
date of the renovated City Hall, the Director of Property 
and L & L agreed to modify the previously approved 
Management Agreement. 

According to Mr. Legnitto, and as shown in Attachment 
I in a letter to the Board of Supervisors dated January 12, 
1999 from Mr. Anthony DeLucchi, Director of Property, 
the following modifications were made to the original L & 
L Agreement: 

a) clarifying the operation of the two cafes, including 
a clause requiring the City to cooperate in defining 
the hours and manner of operation of the Light 
Court Cafe in order to distinguish it from the City 
Hall Cafe located in the basement of City Hall; 

b) eliminating the 30-month "without cause" 
termination provision; 

c) eliminating the surety bond requirement; 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

45 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

d) modifying the provisions relating to the City's 
limited liability and removing the contractual 
monetary ceiling for which the City may be sued; 
and 

e) establishing "a credit against base rent of $850 for 
the first two months and against percentage rent 
for the first month in view of the extraordinary 
equipment installation costs incurred by L & L." 

In regard to e) above, Mr. Legnitto estimates that these 
credits would result in foregone rental payments totaling 
approximately $4,400 which L & L would have otherwise 
paid to the City. This amount of $4,400 is based on the 
$1,700 that would have been paid to the City by L & L in 
base rent for two months ($850 per month times two 
months), plus the estimated $2,700 that would have been 
paid by L & L for one month based on 9 percent of gross 
revenues, estimated by the DRE to be approximately 
$30,000 per month. 

In regard to c) and d) above. Mr. Legnitto states that the 
proposed elimination of the surety bond requirement, and 
the proposed elimination of the contractual monetary 
ceiling on which L & L may bring legal action against the 
City, are necessary contractual modifications in order for 
the parties' legal obligations to be consistent with the 
intent of the original Management Agreement with L & L 
for the operation of the City Hall Cafe. 

Comments: 1. Selection of McCall and Associates 

According to Mr. Zuffo, on September 8, 1998, the DRE 
sent out a Request for Proposals (RFP) to over 100 firms 
for the management of the proposed Light Court Cafe and 
the management of the City Hall Cafe. The RFP was also 
advertised in various newspapers and periodicals. 

Mr. Zuffo reports that written proposals for the 
management of the Light Court Cafe were submitted by 
only two firms in response to the RFP by the deadline of 
September 25, 1998. According to Mr. Zuffo, these two 
proposals were considered unacceptable by the Selection 
Committee (composed of Mr. Zuffo, Mr. Nelson, and Mr. 
Ben Rosenfield of the Mayor's Office) for the management 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



of tbe proposed Light Court Cafe on the main floor of City 
Hall. 

Subsequently, in an effort to provide for the Light Court 
Cafe operation by January 4, 1999, the opening day of the 
renovated City Hall, the Director of Property negotiated 
and entered into the proposed Management Agreement 
with McCall and Associates on a sole source basis, after 
McCall and Associates contacted the Selection 
Committee. The Light Court Cafe is currently operated 
by McCall and Associates. 

Attachment II provided by Mr. Zuffo is a memo 
explaining why McCall and Associates was chosen on a 
sole-source basis, without any further attempt at a 
competitive bidding procedure. 

2. Proposed Modifications to Management 
Agreement with L & L 

Ms. Christina Chi of the City Attorney's Office confirms 
that the modifications to the Management Agreement 
with L & L were business decisions made by the DRE, in 
an effort to facilitate the opening of the City Hall Cafe by 
January 4, 1999, the opening day of the renovated City 
Hall. According to Ms. Chi, the proposed removal of the 
monetary ceiling, which had been originally placed to 
safeguard the City's liability, would mean that there 
would be no limit under the contract, except as provided 
by applicable law, to the damages for which L & L could 
hold the City liable. 

According to both Mr. Smith and Ms. Chi, while such 
modifications theoretically increase the City's exposure, 
the practical risk is not significant, because of the limited 
nature of the City's obligations under the Management 
Agreement with L & L, including primarily the obligation 
to use commercially reasonable efforts to distinguish the 
Light Court Cafe and the City Hall Cafe. Ms. Chi notes 
that the contractual limit is common in the City's 
management agreements but is not used in the City's 
leases because of the different economics involved in a 
lease. As previously noted, the economics of the 
Management Agreement with L & L are more similar to 
that of a lease agreement. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

The original draft of the Management Agreement with L 
& L previously approved by the Board of Supervisors 
limited the City's obligation to L & L under the contract 
to the payment of approximately $42,000 per year, which 
is the compensation provided for under the Management 
Agreement. According to Mr. Legnitto, L & L incurred, at 
it- own cost, approximately $125,000 in installing various 
equipment in the City Hall Cafe premises. Furthermore, 
under Section 8.1 of the Management Agreement with L 
& L, all equipment affixed to the premises would become 
property of the City upon expiration or earlier 
termination of the Management Agreement. The effect of 
the contractual limit would have been to limit L & L's 
remedy to substantially less than its investment in 
fixtures, which would become the City's property if the 
Management Agreement is terminated, even in the event 
of a breach by the City. 

According to Ms. Chi, a surety bond is customarily used in 
a management agreement where the manager is handling 
the City's money. Ms. Chi states that in this instance, the 
economic arrangement is more similar to that of a lease, 
and surety bonds are not used in City leases. 

Recommendations: McCall and Associates was selected on a sole-source basis, 
and the DRE could not provide estimates of rental 
revenue which would be payable by McCall and 
Associates to the City. Based on these factors, the Budget 
Analyst makes a two-part recommendation as to the 
Management Agreement with McCall and Associates for 
the operation of the Light Court Cafe: 

(1) In regard to the Trial Period (or the first 6 
months of cafe operation), approval of the proposed 
resolution as to the Management Agreement for the 
operation of the Light Court Cafe is a policy matter for 
the Board of Supervisors; 

(2) After four months of operation of the Light Court 
Cafe, and prior to the end of the Trial Period, the 
Management Agreement with McCall and Associates for 
the operation of the Light Court Cafe should be evaluated 
by the Department of Real Estate and the Department of 
Administrative Sen-ices. considering information 
gathered from the Trial Period such as the Light Court 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Cafe's usage of space in tbe North Light Court and gross 
sales from the operation of the Light Court Cafe. The 
results of that evaluation should be presented to the 
Board of Supervisors as a basis for determining the 
approval of the proposed Management Agreement with 
McCall and Associates as to the remainder of the 
proposed term of the lease beyond the Trial Period. 

As to the certain modifications made to the original 
Management Agreement with L & L for the operation of 
the City Hall Cafe on the ground floor of City Hall, the 
proposed resolution is a policy matter for the Board of 
Supervisors, since the proposed removal of the surety 
bond requirement under the original Management 
Agreement with L & L and the proposed removal of the 
contractual monetary ceiling on which legal action may be 
brought by L & L against the City would result in 
diminished financial protection for the City. The 
proposed removal of the monetary ceiling safeguarding 
the City's liability would mean that there would be no 
limit under the contract to the damages for which L & L 
could hold the City liable. According to Ms. Chi, L & Ls 
remedies would be limited by applicable law, and the 
City's obligations under the Management Agreement with 
L & L are limited and are under the City's control. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 




City end County of San rrancisco 



Through Mr. Steve Nelson, -~ / yf 
Director of Administrative Services 

Honorable Board -of Supervisors 
City and County of San Francisco 
1 Dr Carlton B Goodlett Place 
San Francisco, CA 94102 

Dear Board Members 



Page 1 of 2 



January 12, 1999 Jo ,.,_ 



Real Estate Departn 

Office c 
Director of Prop. 



71007 7 



We recommend that you approve the attached Resolution authorizing and 
approving a management agreement between the City and County of San Francisco and 
EVENTS MANAGEMENT rNC , DBA MCCAl.L AND ASSOCIATES, for operation of 
a cafe located in the North Light Court of City Hall, and ratifying certain acts in 
connection with such management agreement and the management agreement with 
L AND L, A PARTNERSHIP for the operation of the cafe located on the ground floor of 
City Hall 

The City had conducted a Request For Proposals for the management of the cafe 
located in the Main Floor North Light Court of City Hall (the 'Light Court Cafe ") and the 
cafe located on the ground floor of City Hall (the "Ground Floor Cafe") The City did not 
receive an acceptable response to the RFP pertaining to the Light Court Cafe, and in an 
effort to provide for the Light Court Cafe to be in operation on opening day of the 
renovated City Hali, the Director of Property negotiated and entered into a Management 
Agreement with Events Management Inc , dba McCall and Associates ("McCall"), a copy 
of which is on file with the Clerk of the Board of Supervisors The agreement between 
the City and McCall may be terminated within the first 6 months (the "Trial Period") 
The Director of Property has determined that the rental value of the space used for the 
Light Court Cafe is less rhan SI, 000 per month during the Trial Period and that McCall 
shall pay a percentage fee equal to seven percent (7%) of gross revenues during Trial 
Period. The Management Agreement for the Light Court Cafe also provides that after the 
Trial Period, McCall shall pay a base fee equal to the prevailing market rate (determined 
in accordance with the procedure described in the Management Agreement for the Light 
Court Cafe), plus a percentage fee equal to seven percent (7%) of gross revenues 

Pursuant to Board of Supervisor Resolution No 1017-98. adopted on 
December 7, 1998, the 3oard of Supervisors approved a Management Agreement with 
L and L, a Partnership ("L &. L") with respect to the Ground Floor Cafe known as "City 
Hall Cafe", and on January 4, 1999, the Director of Property and L &. L entered into a 
Management Agreement that contains certain provisions regarding cooperation by the 
City with respect to the Light Court Cafe and includes certain other changes from the 



554-9850 
FAX: 552-9216 



25 Van Ness Avenue, Suite 400 



San Francisco. 941( 



50 






Page 2 or T 



form approved by the Board of Supervisors, a copy of which Management Agreement is 
on file in the office of the Clerk of the Board of Supervisors 

The modifications to the agreement between the City and L &. L were required to 
meet the intent of the City's request for Proposal in defining the operation of both cafes 
located in City Hall. In addition to technical changes, the following changes were made to 
the previously submitted draft Management Agreement with L & L to provide for : 
a) changes clarifying the operation of the two cafes, including a clause requiring the City 
to cooperate in defining the hours and manner of operation of the Light Court Cafe in 
order to distinguish it from the City Hall Cafe, b) addition of a credit against base rent for 
the first two months and against percentage rent for the first month in view of the 
extraordinary equipment installation costs incurred by L & L, c) removal of the thirty 
(30)-month "without cause" termination provision, d) deletion of a surety bond 
requirement, and d) a modification of the provisions relating to City's limited liability. In 
our opinion, none of the above listed changes reflected a substantial change to the 
agreement or to the benefits or costs to the City in this transaction, and were an attempt to 
negotiate final deal points prior to the City Hall opening. 

The attached resolution seeks authority for the Director of Property, on behalf of 
the City and County of San Francisco, to continue the Light Court Cafe Management 
Agreement beyond the Trial Period in accordance with the Management Agreement 
presented to the Board. It also authorizes the Director of Property to enter into any 
additions, amendments or other modifications to the Management Agreement for the Light 
Court Cafe (including, without limitation, the exhibits) that the Director of Property 
determines, in consultation with the City Attorney, are in the best interests of the City, do 
not decrease the fees payable to the City or otherwise materially increase the obligations 
or liabilities of the City, and are necessary or advisable to complete the transaction 
contemplated in the Management Agreement and effectuate the purpose and intent of this 
resolution, such determination to be conclusively evidenced by the execution and delivery 
by the Director of Property any amendments. 

Lastly, this legislation ratifies, confirms and approves all actions taken by the 
Director of Property and other relevant officers of the City with respect to the 
Management Agreement for the Light Court Cafe and the Management Agreement for the 
ground floor City Hall Cafe, including, without limitation, execution and delivery on behalf 
of the City of such agreements. 

If you require additional information, please contact Steve Legnitto or Mark Zuffo 

of this office 




51 



Attachment II 



Date: 1/26/99 

Sender: Mark Zuffo 

To: Saralyn Ang 

cc: Steve Legnitto, Tony DeLucchi 

Priority: Normal 

Subject: LightCourt Cafe 



An RFP was conducted in September of 1998 for both a cafe on the 
ground floor and a cafe on the main floor of City Hall. An acceptable 
bid was chosen for the ground floor cafe (City Hall Cafe) in November 
of 1998. Neither of the two bids submitted for the main floor Light 
Court Cafe were acceptable to the selection committee. In late 
November, McCalls approached the selection committee with an idea for 
the Light Court Cafe. They submitted a written proposal with an 
artist's rendition of the Light Court area with the cafe. The 
selection committee accepted their proposal. Both cafes opened for 
business on Jan. 5, 1999 and seem to be doing well so raf. 

If you have any other questions regarding this matter please contact 
me at 554-9887. 



Mark Zuffo 

Real Estate Department 



52 



Memo to the Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 

Item 9 - File 99-0040 



Department: 
Item: 



Purpose of Lease: 



Lessor: 
Lessee: 
Number of Sq. Ft. 



Airport Commission 

Resolution approving a "Lease Agreement in the North 
Field Cargo Facility" for new cargo warehouse space 
between Federal Express Corporation and the City and 
County of San Francisco, acting by and through the 
Airport Commission. 

This new lease provides for Federal Express Corporation 
(Federal) to occupy warehouse and office space in the 
Airport's North Field Cargo Facility (Facility), to be 
located in the North Field Area of the Airport. The 
Facility is currently under construction, at an estimated 
cost of $59,000,000, and will have the Federal Express 
Corporation, Nippon Cargo Airlines, Inc. (NCA), and at 
least one other tenant. According to Ms. Diane Artz of the 
Airport, the estimated cost of Federal's exclusive 
components of the Facility is $21,000,000. Facility 
Construction costs will be reimbursed to the Airport 
through the tenants' annual rental payments to the 
Airport. Federal presently rents approximately 95,835 
square feet of space from the Airport at the Airport's 
Hangar C-01 on Plot 17, pursuant to a revocable permit, 
in the amount of $12.00 per square foot per year, or 
$1,150,020 based, based on the 95,835 square feet. The 
new Facility under construction is intended to replace the 
aging Hangar C-01 to allow for expansion of the Airport 
and to accommodate additional cargo activity in 
accordance with the Airport's Master Plan Program. 

Under the proposed lease, Federal would use the Facility 
to conduct integrated air cargo related business including 
receiving, delivery, dispatching, processing, handling and 
storage of air cargo and mail. 

City and County of San Francisco 

Federal Express Corporation. 

A total of approximately 125,243 square feet of exclusive 
space, including 108,015 square feet of warehouse space, 
17,228 square feet of office space, 37 truck dock positions 
and 12 delivery truck parking positions. Total space in 

Board of Supervisors 
Budget Analyst 



53 



Memo to the Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Amount Payable 
to Airport: 



Term of Lease: 



Description: 



the Facility, including space used exclusively by the 
particular tenants as well as common area space, will 
total approximately 188,000 square feet of warehouse 
space and 39,000 square feet of office space. 

The proposed lease would require Federal to pay the 
Airport an annual rent which is the greater of the Cost 
Amount 1 or the Market Value Amount 2 . The City will 
determine the exact Cost Amount and the Market Value 
Amount on or before 150 days prior to the first rental 
payment to the Airport is due. Mr. Bob Rhoades, Deputy 
Director of Airport Business and Finance, estimates that 
the rent payable by Federal to the Airport will be $21.42 
per square foot per year, or $2,682,705.06 annually, based 
on the 125,243 square feet. According to Mr. Rhoades, the 
$21.42 is estimated to recover the capital costs of 
Federal's components of the building, as well as to fully 
reimburse the Airport for the Airport's annual operating 
and maintenance costs of Federal's components of the 
building. 

The proposed lease also provides for annual increases in 
the rent based on increases in the Consumer Price Index. 
However, in the sixth year of the proposed lease, the 
annual rental payment to the Airport will be determined 
by a City reappraisal of the Facility to the Market Value 
Amount, and the subsequent annual increases in the rent 
will be made based on increases in the Consumer Price 
Index through the end of the lease. 

Approximately ten years and six months, estimated to 
begin in February or March of 1999 when Federal begins 
its six month tenant improvement program, and to end in 
July or August of 2009. 

The Airport is constructing a new North Field Cargo 
Facility (Facility) to provide cargo warehouse space as 
part of the Airport's Master Plan Program. Completion of 



1 Cost Amount is the sum of (a) projected annual debt service incurred by the City attributable to the 
financing, design and construction of the Facility, and (b) the projected annual operating and 
maintenance charges for the Facility and related administrative charges incurred by the City. 

2 Market Value Amount is the rent a third party would be willing to pay to lease the Facility, based 
on (a) the size, location and age of the Facility, (b) services provided under this proposed lease, (c) the 
rental being obtained for new leases of space at the Airport, and (d) the quality of construction of this 
new Facility. 

Board of Supervisors 
Budget Analyst 



54 



Memo to the Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Comments: 



the construction of the total Facility is scheduled for 
January of 2000; The Facility is being constructed in 
phases, and completion of Federal's and NCA's portions of 
the Facility is scheduled for the Fall of 1999. 

1. The Airport Commission adopted Resolution No. 98- 
0173 on July 14, 1998, recommending the award of the 
lease to the proposed lessee, Federal. According to Ms. 
Artz, it has taken the Airport more than six months to 
forward this legislation to the Board of Supervisors 
because although the Airport Commission recommended 
the award of the proposed lease in July of 1998, Federal 
did not receive the proposed lease until October of 1998, 
and Federal did not sign and return the lease to the 
Airport until mid-December of 1998. 

2. Section 2A.173 of the City Administrative Code states 
"The Airport Commission shall have power to negotiate 
and execute leases of airport lands and space in airport 
buildings, without necessity for competitive bidding, to 
any person, firm, or corporation engaged in air 
transportation ... provided, that the original term of any 
such lease shall not exceed 50 years, nor shall any 
extension of such lease exceed a period of 50 years." 

3. According to Mr. Rhoades, the lease with Federal was 
recommended without soliciting competitive bids because 
the Airport has the authority to make such awards 
pursuant to the Administrative Code as cited in Comment 
No. 2 above, and because after a thorough analysis of 
airline needs and Airport resources, a careful selection of 
airlines was made to match the land and space available, 
and Federal was determined to be the most suitable 
lessee. 

Mr. Rhoades states that in accordance with the Airport's 
Master Plan Program, the North Field area of the Airport 
is designed purely for "freighters", or air transportation 
firms dealing only with the transport of cargo, and as 
such the North Field area is not desirable to the majority 
of airlines, which carry passengers in addition to cargo. 
The majority of airlines seeking land and space at the 
Airport desire the West Field Area as it is designed for 
both passengers and cargo. Mr. Rhoades states that to 
date, Federal Express Corporation and Nippon Cargo 
Airlines are the only two airlines that have formally 

Board of Supervisors 
Budget Analyst 

55 



Memo to the Finance and Labor Committee 

February 3, 1999 Finance and Labor Committee Meeting 



Recommendation: 



requested space in the North Field Cargo Facility. A lease 
with NCA was previously approved in December of 1998 
by the Board of Supervisors (File No. 98-1791). 

4. Ms. Artz states that approximately 18,000 square feet 
of Facility space will remain after both Federal and NCA 
occupy the Facility. Mr. Rhoades states that although 
only two airlines, Federal and NCA, have formally 
requested space in the Facility, one other airline, Korean 
Air, is currently negotiating with the Airport to lease the 
remaining 18,000 square feet of space in the North Field 
Cargo Facility. Mr. Rhoades states that Korean Air will 
most likely lease this remaining space, and that even if 
Korean Air chooses to not lease this space, there is 
sufficient airline demand for space in the North Field 
area to ensure that no space in the Facility will remain 
vacant and that 100 percent of the Airport's capital costs 
as well as the operating and maintenance costs of the 
Facility will be recovered. 

Approval of the proposed resolution is a policy decision for 
the Board of Supervisors. 



Harvey M. Rose 



72, 



rz^> 



cc: Supervisor Yee 

Supervisor Bierman 
Supervisor Becerril 
President Ammiano 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



Board of Supervisors 
Budget Analyst 



56 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, February 10, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Tom Ammiano. 



Members Absent: Sue Bierman. 



DOCUMEN 1 5 utr i . 
FEB 2 2 1999 



Meeting Convened 



The meeting convened at 10:01 a.m 

REGULAR AGENDA 






SAN FRANCISCO 
PUBLIC LIBRARY 

990049 [Federal Funding - Community Development] Mayor 

Resolution approving the 1999 Community Development Program authorizing the Mayor, on behalf of the 
City and County of San Francisco, to accept and expend the City's 1999 Community Development Block 
Grant (CDBG) entitlement from the U.S. Department of Housing and Urban Development, and program 
income generated by the San Francisco Redevelopment Agency up to $65,853,985 which include indirect 
costs of $124,015; approving expenditure schedules for recipient departments and agencies and for indirect 
costs, and, determining no environmental evaluation is required, authorizing the receipt and deposit in 
contingencies of 1999 CDBG entitlement funds in excess of $25,123,000. 

1/1 1/99, ASSIGNED to Finance Committee. 

1/25/99, TRANSFERRED to Finance and Labor Committee. 

2/3/99, CONTINUED. Heard in Committee. Speakers: Pamela David, Director Mayor's Office of 

Community Development; George Welch, President Citizens Committee Community Development; 

Supervisor Ammiano; Ed Harrington, Controller; Haivey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, 

Director Mayor's Office of Housing; Norma Telson; Rita Alvisa; Miss A. Rosa; Miss Toni; Marcio Vela; 

Maurice Sabinas; Joseph Sciancalepore; Diane Chin; Miss Reyes; Supervisor Bierman; Supervisor Ammiano. 

Continued to February 10, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Pam David, Director, MOCD; Marsha Rosen; 
Director, MOH; Supervisor Ammiano; Comer Marshall; Karen Pierce; Anthony Imperial; Raquel Medina; 
Pastor George Lee; Essie Collins; Pat Henderson; Eunice Mix; Almarie Steward; Roger Langford; David 
Smith; Supervisor Yee. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Resolution approving the 1999 Community Development Program authorizing the Mayor, on behalf of the 
City and County of San Francisco, to accept and expend the City's 1999 Community Development Block 
Grant (CDBG) entitlement from the U.S. Department of Housing and Urban Development, and program 
income generated by Mayor's Office of Community Development, Mayor's Office of Housing and the San 
Francisco Redevelopment Agency up to $65,941,040 which include indirect costs of $124,015; approving 
expenditure schedules for recipient departments and agencies and for indirect costs, and, determining no 
environmental evaluation is required, authorizing the receipt and deposit in unreserved fund balances of 1999 
CDBG entitlement funds in excess of $25,123,000; placing $503,475 on reserve. 



RECOMMENDED AS AMENDED by the following vote: 
Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 3:16 PM on WIM 



Finance and Labor Committee 



Meeting Minutes 



February 10, 1999 



990078 [Federal Funding - Emergency Shelter Program] 

Resolution approving the 1999 Emergency Shelter Grants Program and Expenditure Schedule and authorizing 
the Mayor on behalf of the City and City and County of San Francisco to apply for, accept, and expend a 
$891,000 entitlement under the Emergency Shelter Grants Program from the U.S. Department of Housing and 
Urban Development. (Mayor) 

1/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

2/3/99, CONTINUED. Heard in Committee. Speakers: Pamela David, Director Mayor's Office of 
Community Development; George Welch, President Citizens Committee Community Development; 
Supervisor Ammiano; Ed Harrington, Controller; Harvey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, 
Director Mayor's Office of Housing; Norma Telson; Rita Alvisa; Miss A Rosa; Miss Tom, Marcio Vela; 
Maurice Sabinas; Joseph Sciancalepore; Diane Chin; Miss Reyes; Supervisor Bierman; Supervisor Ammiano 
Continued to February 10, 1999. 

Heard in Committee. Speakers: Han-ey Rose, Budget Analyst; Pam David. Director. MOCD, Marsha Rosen. 

Director, MOH; Supervisor Ammiano; Comer Marshall; Karen Pierce, Anthony Imperial. Raquel Medina, 

Pastor George Lee; Essie Collins. Pat Henderson; Eunice Mix; Almarie Steward, Roger Longford, David 

Smith; Supervisor Yee. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Resolution approving the 1999 Emergency Shelter Grants Program and Expenditure Schedule and authorizing 

the Mayor on behalf of the City and City and County of San Francisco to apply for, accept, and expend a 

$891,000 entitlement under the Emergency Shelter Grants Program from the U.S. Department of Housing and 

Urban Development; placing $120,350 on reserve. (Mayor) 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 2 - Yee, Ammiano 
Absent. 1 - Bierman 

990079 (Federal Funding - Home Program! 

Resolution authorizing the Mayor of the City and County of San Francisco to apply for, accept and administer 
a grant from the U.S. Department of Housing and Urban Development for a total amount not to exceed 
$7,079,000 for the HOME Program authorized under Title II of the National Affordable Housing Act of 1990, 
Public Law Number 101-625, and approving the HOME Program description as described in the 1999 acuon 
plan for San Francisco's consolidated plan. Indirect costs associated with the acceptance of this grant funds 
will be paid by the Community Development Block Grant funds (Mayor) 

1/13/99, RTCEIVED AND ASSIGNED to Finance am' Labor Committee. 

2/3/99, CONTINUED. Heard in Committee. Speakers: Pamela David, Director Mayor's Office of 
Community Development; George Welch, President Citizens Committee Community Development; 
Supervisor Ammiano; Ed Harrington, Controller; Harvey Rose, Budget Analyst; Dan Sullivan; Marsha Rosen, 
Director Mayor's Office of Housing; Norma Telson; Rita Alvisa. Miss A Rosa, Miss Tom; Marcio Vela; 
Maurice Sabinas; Joseph Sciancalepore; Diane Chin; Miss Reyes; Supervisor Biennan; Supervisor Ammiano 
Continued to February 10, 1999. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Pam Da\id, Director. MOCD; Marsha Rosen; 
Director, MOH; Supervisor Ammiano; Comer Marshall; Karen Pierce; Anthony Imperial; Raquel Medina. 
Pastor George Lee; Essie Collins; Pat Henderson; Eunice Mix; Almarie Steward; Roger Longford; David 
Smith; Supervisor Yee. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee. Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



rriMe4*l3:r r\t cm 1,11*9 



Finance and Labor Committee 



Meeting Minutes 



February 10, 1999 



990091 [Interdepartmental Jurisdictional Transfer] Supervisor Bierman 

Ordinance transferring jurisdiction over certain real property located at Drumm Street, between Clay and 
Washington Streets, described generally as Assessor's Block 202, Lots 6, 14 and a portion of 15, excluding the 
subsurface thereof, and a portion of Assessor's Block 203, Lot 14, from the Department of Public Works to the 
Recreation and Park Commission; and providing that no building, improvement or structure may be 
constructed on the surfaces of such parcels and adjoining Assessor's Block 202, Lot 18. 

1/19/99, ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Eula Walters. Continued to February 24, 1999. 
CONTINUED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

982131 [Union Square Public Parking Garage 1999 Lease] Supervisor Kaufman 

Ordinance approving and authorizing the execution and delivery of a lease of the Union Square Pub he Parking 
Garage and a supplemental park maintenance agreement, an amendment to the lease of the Sutter-Stockton 
Garage and an amendment to a 1993 payment agreement; approving the issuance of City of San Francisco 
Uptown Parking Corporation Parking Revenue Bonds; adopting and making certain findings pursuant to the 
California Environmental Quality Act; and authorizing and ratifying the execution and delivery of documents 
reasonably necessary for the issuance, sale and delivery of such bonds, all in connection with the financing of 
seismic retrofit improvements to and the expansion of the Union Square Public Parking Garage and of 
improvements to Union Square Park. 

12/21/98, RECEIVED AND ASSIGNED to Finance Committee. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Allison Krumbein on behalf of Supervisor 
Kaufman; Rich Hills, Mayor's Office; Don Alameida, Public Works Dept.; April Phillips; Supervisor 
Ammiano; Supervisor Yee; Ted Lakey, Deputy City Attorney; Michael Cohen, Deputy City Attorney; Ernie 
Prindle, Recreation and Park Dept; Linda Mjellem, Executive Director, Union Square Association; Paul 
Newman, Attorney for Uptown Parking Corporation; John Barber, Director, Parking Authority. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance approving and authorizing the execution and delivery of a lease of the Union Square Public Parking 
Garage, a supplemental park maintenance agreement, an amendment to the lease of the Sutter-Stockton 
Garage and an amendment to a 1993 payment agreement; approving the issuance of City of San Francisco 
Uptown Parking Corporation Parking Revenue Bonds and authorizing and ratifying the execution and delivery 
of documents reasonably necessary for the issuance, sale and delivery of such bonds; adopting findings 
pursuant to the California Environmental Quality Act; and adopting findings of consistency with the San 
Francisco General Plan; all in connection with the financing of improvements to and the expansion of the 
Union Square Public Parking Garage and of improvements to Union Square Park. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 

990155 [Bayshore-Hester Surplus Funds Declaration] 

Resolution making a declaration of a surplus in the improvement fund for the Bayshore-Hester assessment 
district and directing disbursement of such surplus. (Mayor) 

1/27/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Sara Hollenbeck, Mayor's Office of Finance. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 3:17 PM on 2/1 LW9 



Finance and Labor Committee 



Meeting Minutes 



February 10, 1999 



990041 (Amendment to 1997-2001 MOU, American Physicians and 
Dentists, Bargaining Unit 8-CC) 

Ordinance amending Ordinance Number 259-97 to implement the provisions of an arbitrator's award 
amending the provisions of the Memorandum of Understanding between the Union of American Physicians 
and Dentists and the City and County of San Francisco for Bargaining Unit 8-CC to be effective July 1, 1998. 
(Department of Human Resources) 

(Fiscal impact.) 

1/8/99, RECEIVED AND ASSIGNED to Finance Committee. 

1/25/99, TRANSFERRED to Finance and Labor Committee. 1/27/99 - From Controller, submitting cost 
analysis of amendment to MOU between CCSF and United Association of Physicians and Dentists for the 
period July 1, 1999 through June 30, 2001, affecting 181 employees with a salary base of $19.8 million 

Heard in Committee Speakers: Harvey Rose. Budget Analyst; Alice Villagomez, Deputy Director, Human 

Resources. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

990042 | Amendment to 1997-2001 MOU, American Physicians and 
Dentists, Bargaining Unit 11-AA| 

Ordinance amending Ordinance Number 258-97 to implement the provisions of an arbitrator's award 
amending the provisions of the Memorandum of Understanding between the Union of American Physicians 
and Dentists and the City and County of San Francisco for Bargaining Unit 1 1-AA to be effective July 1, 
1998. (Department of Human Resources) 

(Fiscal impact.) 

1/8/99, RECEIVED AND ASSIGNED to Finance Committee. 

1/25/99, TRANSFERRED to Finance and Labor Committee. 1/27/99 - From Controller, submitting cost 
analysis of amendment to MOU between CCSF and United Association of Physicians and Dentists for the 
period July 1, 1999 through June 30, 2001, affecting 181 employees with a salary base of approximately $19.8 
million. 

Heard in Committee Speakers Har\ey Rose. Budget Analyst; Alice Villagomez. Deputy Director. Human 

Resources. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent 1 - Bierman 

990043 [Amendment to 1998-2001 MOU, Teamsters Local 856] 

Ordinance implementing Amendment No. 1 to the Memorandum of Understanding between the Teamsters 
Local 856 and the City and County of San Francisco to correct a clerical error by adding Classification 3372 
Animal Control Officer and deleting Classification 3370 Animal Care Attendant in the listing of classifications 
having one year probationary period as set forth in Article II. B probationary period effective July 1, 1998 
through June 30, 2001. (Department of Human Resources) 

1/8/99, RECEIVED AND ASSIGNED to Finance Committee. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers Har\>ey Rose. Budget Analyst; Alice Villagomez. Deputy Director. Human 

Resources. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



rriMe4atl:l-rM oh WW 



Finance and Labor Committee 



Meeting Minutes 



February 10, 1999 



990044 [Amendment to 1998-2001 MOU, Deputy Sheriffs' Association] 

Ordinance implementing the provisions of an amendment to the Memorandum of Understanding between the 
San Francisco Deputy Sheriffs' Association and the City and County of San Francisco to add Appendix D: 
Leave of Absences, in order to correct a clerical error of omission. (Department of Human Resources) 

1/8/99, RECEIVED AND ASSIGNED to Finance Committee. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, Human 
Resources; Supervisor Yee. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

981796 [ATM Surcharges] Supervisors Ammiano, Bierman, 

Medina, Yee 

Ordinance amending Police Code by adding Section 648. 1 to prohibit a financial institution from imposing a 
surcharge on non-account holders who use ATMs of the financial institutions that are located in San Francisco. 

(Adds Section 648.1.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

1 1/30/98, CLERICAL CORRECTION to Finance Committee. Amended on Page 1, line 5 to replace "ATMS" 
with "ATMs" and "Institution" with "Institutions". 

1/25/99, TRANSFERRED to Small Business, Economic Vitality and Consumer Services Committee. 
1/29/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Ted La key, Deputy City 
Attorney; Clarice Duma, Legislative Analyst;, Supervisor Yee. 

Support: Joh Golinger; Walter Johnson, Labor Council; Chuck Ayala; Arthy Varma, Linda Sherry; Hovmrd 
Pacheco; Gail Hillebrand; Shirley Bierly; Frank Martini-Delcampo; Chriss Ramero; Vivian Louie. 
Opposed: Roberta Achenberg, California Chamber of Commerce; Greg Wilhalm; Edward Levy; Craig 
Hudson; Bryon Scordelis; Paul VanEtten; Frank Bartaldo; Robert Menicucci; Stephen Adams; Mark Mosher; 
Jon Nakamura; James Rockenbach; Nick Aiello; Howard Wallace; Chris Chenoweth. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

ADJOURNMENT 



Meeting adjourned at 1:20p.m. 



City and County of San Francisco 



Printed at 3:1^ PM on 2/ILV9 






Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



CITY AND COUNTY 




OF SAN FRANCIS 



JBOARD OF SUPERVISORS 



DOCUMENTS DEPT. 
FEB J 1999 



BUDGET ANALYST ^ AN F RANCISCO 

PUBLIC LIBRARY 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 nnn T 

FAX (415) 252-0461 



February 5, 1999 
TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst Rec*-we*Ja--..*j -&r ,»***«-j / 

SUBJECT: February 10, 1999 Finance and Labor Committee Meeting 

Item 1 - File 99-0049 

Note: This item was continued by the Finance and Labor Committee at its 
meeting of February 3, 1999. 

Department: Mayor's Office of Community Development (MOCD) 

Item: Resolution approving the 1999 Community Development 

Program and authorizing the Mayor to apply for, receive and 
expend the City's 1999 Community Development Block 
Grant (CDBG) from the U.S. Department of Housing and 
Urban Development (HUD) estimated to be $25,123,000. The 
proposed resolution would also transfer and expend program 
income generated by the San Francisco Redevelopment 
Agency of up to $40,730,985 for a total 1999 CDBG Program 
of up to $65,853,985. The proposed resolution would also (a) 
approve expenditure schedules for recipient City 
departments and agencies, including indirect costs of 
$124,015, (b) determine that no environmental evaluation is 
required and (c) authorize the receipt and deposit of any 
funds in excess of the entitlement of the 1999 CDBG 
entitlement of $25,123,000 be placed in a Contingency Fund. 

Description: Refer to the Budget Analyst's separate report of January 29, 

1999 on the Mayor's proposed 1999 Community Development 
Program. 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Comments: The Attachment to this report summarizes our final revised 

recommendations to our previously issued report dated 
January 29, 1999 on the Mayor's proposed 1999 Community 
Development Program. The recommendations which have 
been revised from our prior report are as follows: 

1. Withdrawal of the $35,250 reduction to Section XI 
Planning and Capacity Building, based on additional 
information provided by MOCD. 

2. Withdrawal of the $33,960 reduction to Section XII 
Program Administration, Controller and Indirect Costs, 
based on additional information provided by MOCD. 

3. Withdrawal of $60,021 which would have disapproved 
one requested class 1369 Special Assistant X position to 
Section XII Program Administration, Mayor's Office of 
Housing, based on additional information provided bv 
MOCD. 

4. Withdrawal of $293,000 of previously recommended 
reserves in Section IX Community Economic Development 
Economic Development Pool from $493,000 to $200,000, 
based on additional information provided by MOCD. 

5. Addition of a reserve of $76,602 for one new MOCD 
position Class 1371 Special Assistant XII for Economic 
Development activity, pending submission of a detailed 
work program submitted to the Finance and Labor 
Committee pertaining to the Economic Development 
activity. The work program should identify specific 
program components, performance measures and 
anticipated accomplishments related to Economic 
Development in order to justify the requested new 
position. 

Recommendations: 1. Reduce the 1999 Community Development Program by 
$108,000 from $25,123,000 to $25,015,000 as shown in the 
Attachment to this report. 

2. Reserve $376,602 in the 1999 Community Development 
Program as shown in the Attachment to this report. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 1 



Recommended Reductions 
Section Program or Recipient 



Amount 



XII Mayor's Office of Homelessness $ 2,796 

Mayor's Office of Housing 80,204 

(recommended reduction reduced by $60,021 based on new information 

provided by MOCD) 
Disability Council 5,000 

S F Department of City Planning 20.000 



Total Recommended Reductions 



108.000 



Page 

87 
92 

92 
94 



Recommended Reserves 
Section Program or Recipient 

III San Francisco Housing Authority Program Pool 

DC Community Economic Development Economic 

Development Pool 

(recommended reserve reduced by $293,000 based on additional 
information provided by MOCD) 

XII Mayor's Office of Community Development 

(MOCD bas not adequately justified an additional new position) 



Amount 
$100,000 

200,000 
76.602 



Page No. 



13 



61 



79 



Total Recommended Reserves 



S376.602 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-0078 

Note: This item was continued by the Finance and Labor Committee at its 
meeting of February 3, 1999. 



Department: 
Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Description: 



Mayor's Office of Community Development (MOCD) 

Resolution approving the 1999 Emergency Shelter Grants 
Program and expenditure schedule and authorizing the 
Mayor on behalf of the City and County of San Francisco to 
apply for, accept, and expend an $891,000 entitlement under 
the Emergency Shelter Grants Program of the U.S. 
Department of Housing and Urban Development. 

$891,000 

April 1, 1999 through March 31, 2000 

U.S. Department of Housing and Urban Development (HUD) 
Emergency Shelter Grants Program (ESGP) 

The HUD Emergency Shelter Grants Program was first 
established under the Stewart B. McKinney Homeless 
Assistance Act in July, 1987. The program is designed (1) to 
assist in improving the quality of existing emergency shelters 
for the homeless, (2) to assist in making available additional 
emergency shelters, and (3) to assist in meeting the costs of 
operating emergency shelters in order to provide certain 
essential social services to homeless individuals so that those 
persons have access to the support services needed to 
improve their situations. 

The Mayor's Office of Community Development (MOCD) is 
responsible for administering and monitoring the Emergency 
Shelter Grants Program (ESGP). Funds from the ESGP are 
budgeted under five categories, three program categories 
(Essential and Social Services, Maintenance and Operating 
Expenses and Homeless Prevention Services), and two other 
categories, MOCD Administration and an Emergency Shelter 
Grants Pool. 

The MOCD advises that grant funds in the amount of 
$891,000 from the 1999 ESGP ($93,000 less than the 1998 
ESGP allocation of $984,000) would be allocated to 24 
projects (including administration and the grants pool) under 
the five categories identified above involving 16 non-profit 
homeless service providers and shelters. 

Descriptions of the 24 projects including administration and 
the grants pool selected for funding by MOCD are as follows: 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

ESSENTIAL AND SOCIAL SERVICES 

These grants would assist in funding staff at homeless 
shelters for shelter management and for the provision of 
social services to shelter residents. 

Asian Women's Shelter $36,856 

The grant would fund the salary of a Facilities Coordinator. 
The Asian Women's Shelter provides emergency shelter and 
support services to battered monolingual Asian women and 
their children. 

Catholic Charities of the Archdiocese of $25,000 

San Francisco/ Family Resource Center 
814 Mission Street, 3rd Floor 
The grant would be used to pay for 58 percent of the 
personnel costs of a case manager for the operation of a child 
care center for homeless families. 

Dolores Street Community Services $31,250 

938 Valencia Street 

The grant would be used to help fund the Case Manager 
position. Dolores Street Community Services provides 
emergency shelter and support services at three adult 
shelters. 

La Casa de las Madres $45,782 

The grant would be used to provide for a Women's Advocate 
and a Facility Assistant. La Casa de las Madres provides 
shelter and advocacy services, a 35-bed emergency shelter 
program, case management, information and referral 
services. 

Swords to Plowshares $31,400 

1063 Market Street 

The grant would help fund a part-time social worker and a 
part-time claims assistant. The Swords to Plowshares 
program provides outreach and legal services to homeless 
veterans and transitioning toward vocational training and 
employment. 

United Council of Human Services $28,400 

2111 Jennings Street 
The grant would help pay a portion of the staffing at the 
Center. The United Council of Human Services provides free 
hot meals, clothing, and job referral and employment services 
to low-income and homeless people in the Bayview Hunters 

Point Community. 

Subtotal $198,688 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



MAINTENANCE AND OPERATING EXPENSES 

These grants would pay basic operating expenses at 
homeless shelters and other homeless support organizations. 

Asian Women's Shelter $19,144 

location confidential 

This grant would pay for repairs and maintenance, 
insurance, telephone and utilities. 

Bar Association of San Francisco $17,491 

The Volunteer Legal Service Program (VLSP) 
955 Market Street, Suite 915 

Overhead expenses including repairs, insurance, rental of 
space, supplies, telephone, travel, printing and audit of their 
project activities. 

Central City Hospitality House - Orlando 
House $10,000 

290 Turk Street 

The grant would pay for utilities, telephone, insurance, 
repairs and maintenance. The Central City Hospitality 
House - Orlando House is a shelter for runaway and 
homeless youths ages 15 to 17 years. 

Central City Hospitality House $10,300 

146 Leavenworth Street 

The grant would pay for portions of various overhead costs 
including utilities, insurance, office supplies and rental of 
space. The Central City Hospitality House is an emergency 
shelter for homeless men. 

Dolores Street Community Services $9,750 

1249 Alabama and 24th Street 

The grant would pay for portions of the cost of rent, 
insurance, utilities, supplies and an audit of the program. 

Episcopal Community Services of $40,000 

San Francisco 
201 Eighth Street 
The grant would be used to pay for rent, and utilities. The 
Episcopal Community Services of San Francisco provides 
shelter, rehabilitation services, and case management 
services to homeless men and women. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Friendship House Association of $36,900 

American Indians 
80 Julian Avenue 

The grant would pay for rent, repairs and maintenance, 
insurance, audits, utilities, telephone, postage, and office 
supplies. The Friendship House Association of American 
Indians provides residential alcohol and drug abuse 
treatment services to American Indian women and men. 

Hamilton Family Center $43,000 

1525 Waller Street 
The grant would pay for renting the program facility. 
Hamilton Family Center is a homeless family shelter that 
provides meals, preschool programs, on-site medical clinic, 
children's therapy, and family case management. 

La Casa de las Madres $31,518 

location confidential 

The grant would pay for the rental of the shelter. 

Larkin Street Youth Center - Diamond 
Youth Center $54,000 

536 Central Avenue 
The grant would pay for rent, repairs, utilities and telephone. 
The Larkin Street Youth Center - Diamond Youth Center 
provides emergency shelter and support services for 12 to 17 
year old runaways and homeless youths. 

St. Vincent de Paul Society $20,000 

Confidential Location 
The grant would be used to pay for rent at the Rosalie House, 
the agency's program for battered women and children. 
Rosalie House is an eight week, 20-bed facility for women 
and their children who are victims of physical, sexual, or 
emotional abuse. 

Swords to Plowshares $7,200 

1063 Market Street 

The grant would be used to pay rent, insurance, office 
supplies, MUNI fast passes to clients and to audit the 
program. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



United Council of Human Services S67,600 

1345 Ocean Avenue 

The grant would help pay for rent, insurance, repairs, office 
supplies, utilities, food, fuel for vehicles and an audit of the 
program. 



Subtotal $366,903 

HOMELESS PREVENTION SERVICES 

These grants would fund programs dedicated to preventing 
homelessness and to assisting the homeless in obtaining 
governmental benefits. 

American Red Cross $68,000 

Homeless Prevention Program 
1440 Harrison Street 

The grant would pay for one-time rental assistance for 
individuals and families facing eviction because of an 
inability to pay rent. The American Red Cross Bay Area - 
Homeless Prevention Program provides rental assistance to 
low-income San Francisco residents. 

Bar Association of San Francisco $42,509 

The Volunteer Legal Service Program (VLSP) 
955 Market Street, Suite 915 
The grant would partially pay for personnel costs for five 
employees that provide legal and related social services to 
traditionally underserved client groups that include low 
income San Francisco residents. 

Compass Community Services - (formerly 
Traveler's Aid of San Francisco) $50,000 

942 Market Street, 6th Floor 

The grant would help pay for hotel rooms for homeless 
families. Compass Community Services provides emergency 
shelter for homeless families. 



Subtotal $160,509 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

MOCD ADMINISTRATION $44.550 

The amount of $44,550 represents five percent of the total 
ESGP grant award of $891,000. This amount will partially 
fund the salaries of a program administrator (50%) and an 
accountant (25%) at the MOCD, for a combined .75 FTE of 
staff time, to administer the proposed grants. The amount of 
$44,550 for MOCD administration in 1999 represents a 
decrease of $4,650 or 9.5 percent from the 1998 budget 
allocation of $49,200. 

EMERGENCY SHELTER GRANTS POOL $120.350 

The Emergency Shelter Grants Pool is a pool to provide 
additional assistance for programs and related services for 
the homeless. Such program and services have not yet been 
determined. The Pool would be reduced by $94,650 from 
$215,000 in 1998 to $120,350 in 1999. The $120,350 would be 
allocated to specific projects at a later time. 

TOTAL $*9 1,000 

Project Budget: 

Essential and Social Services (22.3°. of Total Grant) 

Amount 

Asian Women's Shelter S 36,856 

Catholic Chanties/St. Joseph's Village 25,000 

Dolores Street Community Services 31.250 

La Casa de las Madres 45,782 

Swords to Plowshares 31,400 

United Council of Human Services 28.400 

Subtotal S 198,688 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Maintenance and Operating Expenses (41.2% of Total Grant) 

Amount 
$19,144 



Asian Women's Shelter 

Bar Assoc, of San Francisco, Volunteer Legal 

Services Program 
Central City Hospitality House - Orlando 

House 10,000 
Central City Hospitality House 
Dolores Street Community Services 
Episcopal Community Services 

of San Francisco 
Friendship House Association of 

American Indians 
Hamilton Family Center 
La Casa de las Madres 
Larkin Street Youth Center - Diamond 

Youth Center 
St. Vincent de Paul Society 
Swords to Plowshares 
United Council of Human Services -» 



17,491 



10,300 
9,750 

40,000 

36,900 
43,000 
31,518 

54,000 

20,000 

7,200 

67.600 



Subtotal . $366,903 

Homeless Prevention Services (18.0% of Total Grant) 



Description 

American Red Cross Bay Area SF 
Bar Assoc, of San Francisco, Volunteer Legal 
Services Program 



$68,000 
42,509 
50.000 



Compass Community Services 

Subtotal $160,509 

MOCD Administration (5.0% of Total Grant) 

Subtotal $44,550 

Emergency Shelter Grants Pool (13.5% of Total Grant) 

Subtotal $ 120.350 

GRAND TOTAL $891.000 

Required Match: $891,000 will be provided by the Department of Human 
Services (DHS) from General Fund monies approved in the 
FY 1998-1999 DHS Budget. A description of these funds is 
provided in Comment No. 1. 



Indirect Costs: 



None 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



10 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Comments: 1. Mr. Jon Pon of MOCD reports that, in order to comply 

with the required match of local funds, a total of $891,000 
has been allocated from FY 1998-99 General Fund monies 
approved in the budget of the Department of Human 
Services. These include: 

American Red Cross Bay Area $ 73,500 

Central City Hospitality House 200,000 

Compass Community Services 531,769 

Dolores Street Community Services 85.731 

Total $891,000 

2. The proposed grant allocation of $891,000 for 1999 
represents a $93,000 or 9.45 percent decrease over the 1998 
budget allocation of $984,000. 

3. The MOCD reports that it conducted a Request for 
Proposal (RFP) process in June of 1998 to homeless service 
providers and shelter operators for the 1999 Emergency 
Shelter Grants Program. In July of 1998, the MOCD 
received 20 applications requesting $1,273,868 in ESGP 
funds in response to the RFP process. A total of 24 project 
applications were selected. These projects are the subject of 
this report. 

4. The MOCD has prepared a Disability Access Checklist, 
which is on file with the Clerk of the Board. 

5. Four projects received new or increased funding in 1999 
that total $106,300. These are in addition to approved 
funding during 1998. We consider the approval of new and 
increased funding to be policy matters for the Board of 
Supervisors. The four projects subject to new or increased 
funding are as follows: 

1999 1998 Amount of New- 

Proposed Funding or Increased 

Proiect Funding Allocation Funding 

BASFA'olunteer Legal Services Program S60.000 S S60.000 

Episcopal Community Services of San Francisco 40,000 31,000 9.000 
Friendship House Association of American 

Indians 36,900 24.600 12.300 

United Council Of Human Services 96.000 71.000 25.000 

Totals S232.900 S 126.600 S 106.300 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

6. Because $120,350 bas been set aside for future projects in 
the Emergency Shelter Grants Pool, that will be allocated at 
a later time, the funds should be reserved until MOCD 
provides the Finance Committee with budget details as to 
how these monies will be allocated. 

Recommendations: 1. Approve funding in the amount of $784,700 ($891,000 
requested less the increased funding level of $106,300 for 
new and existing projects). 

2. In accordance with Comment No. 5 above, we consider 
approval of $106,300 in new and increased funding levels to 
be a policy matter for the Board of Supervisors. 

3. In accordance with Comment No. 6, reserve $120,350 set 
aside in the Emergency Shelter Grants Pool pending further 
information by MOCD submitted to the Finance Committee 
of budget details and related allocations. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-0079 

Note: This item was continued by the Finance and Labor Committee at its 
meeting of February 3, 1999. 



Department: 
Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Project: 
Description: 



Mayor's Office of Housing (MOH) 

Resolution authorizing the Mayor to apply for, accept and 
administer a grant from the U.S. Department of Housing 
and Urban Development (HUD) for the HOME 
Investment Partnership Program authorized under Title 
II of the National Affordable Housing Act of 1990 and 
approving the HOME Program description as described in 
the Preliminary 1999 Action Plan for the City and 
County. 1 Indirect costs associated with the acceptance of 
these grant funds will be paid by Community 
Development Block Grant (CDBG) funds. 

Not to exceed $7,079,000 , 

April 1, 1999 to March 31, 2000 

U.S. Department of Housing and Urban Development 
(HUD) 

Home Investment Partnership (HOME) Program 

The HOME Program is authorized under Title II of the 
National Affordable Housing Act of 1990 (Public Law 
Number 101-625). The Act provides funds for the 
acquisition, rehabilitation and development of privately- 
owned affordable housing. 

In August, 1994, HUD issued regulations requiring that 
beginning in 1995, a Consolidated Plan be developed for 
(a) the HOME Program, (b) the Housing Opportunities for 
People With AIDS (HOPWA) Program and (c) the 
Community Development Block Grant Program (CDBG). 
In response, the MOH has developed a 'Preliminary 1999 
Action Plan for the City and County of San Francisco, 
Draft for Public Review." The MOH advises that the 



1 The "Preliminary 1999 Action Plan for the City and County of San Francisco, Draft for 
Public Review," dated January 15, 1999, contains the City's plans and programs for 
privately-owned housing, totaling $53,546,075, as shown in the following pages. The "final" 
1999 Action Plan will reflect the program funding requests approved by the Board of 
Supervisors in this subject HOME Program legislation, and legislation being considered by 
the Finance Committee (see Files 99-0049 and 99-0078 of the Budget Analyst's report to the 
Finance Committee of February 3, 1999). 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



13 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Preliminary 1999 Action Plan, when finalized to reflect 
the program funding to be approved by the Board of 
Supervisors for the three programs enumerated above, 
will function as the MOH grant application for HOME 
Program funding from HUD. MOH and MOCD must 
submit the 1999 Action Plan to HUD by February 15, 
1999. According to the Preliminary 1999 Action Plan for 
privately-owned housing development and administrative 
costs, the MOH anticipates receiving $7,077,000 2 for the 
HOME Program, or $492,000 more than the 1998 
allocation of $6,585,000. 

The Preliminary 1999 Action Plan for privately-owned 
housing developments in San Francisco totals 
$53,546,075, including the proposed $7,077,000 HOME 
grant allocation and the following other sources of 
housing funds: 

HUD HOME Funds: 

Proposed New 1998 Funds (Subject of this request) $7,077,000 

Less funds for administrative costs 855.900 

Subtotal HOME Funds 6.221,100 

Other Federal Sources 

Community Development Block Grant (CDBG) 5,673,115 

CDBG Program Income 1,178,545 

HUD HOPWA funds 1.150.000 

Subtotal Other Federal Sources 8,001,660 

Local Sources 

Proposition A (Affordable Housing and Home 

Ownership General Obligation Bond Funds to 

be requested) 19,798,000 

Tax Increment Funds: 

Carry-forward Funds From 1998-99 11.084.297 

Hotel Tax Funds 5.000,000 

Affordable Housing Fund (OAHPP Program) 2.348,018 



: The final amount approved by HUD is S", 077, 000 or S2.000 less than the not to exceed 
amount of $7, 079, 000 contained in the proposed resolution and includes an administrative 
allocation of S855.900. as shown in the "Budget" section of this report. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



14 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Home ownership Assistance Loan Payments $ 993,000 

Code Enforcement Rehabilitation Fund (CERF) 
(CERF funds are received from the State Franchise 
Tax Board as a result of disallowed income tax 
Deductions and penalties from taxpayers with 
San Francisco Housing Code violations) 100.000 

Subtotal Local Sources $39,323,315 

Total Projected Funds for Privately-Owned 
Housing Developments in 1999 $53,546,075 

The proposed total 1999 HOME Program funds of 
$7,077,000 represents approximately 13.2 percent of the 
total $53,546,075 in projected funds for privately-owned 
housing development in San Francisco. These funds are 
dedicated for privately-owned housing development. None 
of these funds would be used by the San Francisco 
Housing Authority or for other public housing projects. 
The HOME Program funds of $7,077,000, excluding the 
administrative costs for MOH, would be allocated by the 
MOH to private or non-profit developers for privately 
owned housing. 

Procedures for allocating HOME Program funds were 
approved by the Board of Supervisors in August, 1992 
(File 68-92-4.1) and revised in February, 1994 (File 68-94- 
7). (These procedures outline broad criteria and a process 
to follow for allocating the HOME Program funds, such as 
how to notice the availability of housing funds to 
interested parties, how to evaluate the funding proposals, 
specific underwriting criteria, etc.). Projects which are 
eligible for HOME funding are as follows: 

1. Projects, which are funded for capital construction or 
rehabilitation of housing units to be owned and 
managed by the applicant, must be occupied by 
households with incomes that do not exceed 60% of the 
median income as established by HUD. 

2. ^ First-time home ownership assistance must be 
provided only to low income persons with household 
incomes that do not exceed 80% of median income as 
established by HUD. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

IS 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



HOME regulations require that a minimum of 15 percent 
of the City's proposed 1999 HOME allocation of 
$7,077,000 or $1,061,550 be reserved for housing 
developed, sponsored or owned by non-profit Community 
Housing Development Organizations (CHDOs). According 
to Mr. Joe LaTorre of MOH, nearly all of San Francisco's 
affordable housing development efforts in recent years 
have been conducted in collaboration with local 
community-based non-profit housing development 
corporations, several of which have satisfied HUD 
requirements to qualify as CHDOs. CHDOs are expected 
to continue performing the roles that non-profit housing 
development corporations have traditionally performed in 
San Francisco, including acquisition and rehabilitation of 
existing buildings, acquisition of sites and development of 
new housing and ownership and management of 
subsidized developments. 

Budget: The proposed $7,077,000 in HOME Program funds for the 

one-year period of April 1, 1999, through March 31, 2000, 
would be expended as follows: 

Item Amount 

Community Housing Development Organization 
(CHDO) Rehabilitation of an estimated 100 
housing units: 

Acquisition/Substantial Rehabilitation (requiring 

more than $25,000 per unit) of housing units 

for low-income households. $2,860,517 

Acquisition/Other Rehabilitation (requiring less 

than $25,000 per unit) of housing units for 

low-income households. 1,500,000 

Other Activities: 

New Construction of Housing for low income 

households (these funds would be allotted to 

The Hamilton Family Center, a 70 bed housing 

Development for formerly homeless families.) 1.824.109 

Tenant-Based Rental Assistance (Catholic Charities) 36.474 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item Amount 

Administrative Expenses: 

Mayor's Office of Housing 

Administrative Expenses $524,905 

CHDO Administrative Expenses 150,000 

Catbolic Charities Administrative Expense 13,526 

Other Administrative Expenses 167,469 

Subtotal Administrative Expenses 855,900 

Totals $7,077,000 

Required Match : $1,769,250 (25 percent of the $7,077,000 grant total). 



Indirect Costs: 



Comments: 



Indirect costs of $124,015 for General City purposes will 
be paid from CDBG funds for the HOME Program and the 
CDBG Program. 

1. According to Mr. LaTorre, the 25% matching fund 
requirement of $1,769,250 is anticipated to be provided 
from Hotel Tax funds. In 1999, the MOH is anticipating 
receiving an estimated total of $5 million in Hotel Tax 
funds, which was appropriated in the Fiscal Year 1998-99 
budget to be used for the development of low-income 
housing for seniors and handicapped residents. Mr. 
LaTorre reports that $1,769,250 of these Hotel Tax 
expenditures will be used as matching funds for the 
proposed HOME Investment Partnership Program grant. 

2. HOME regulations limit expenditures for payment of 
administrative and planning costs of the HOME Program 
to an amount of HOME funds that is not more than ten 
percent of the fiscal year HOME basic formula allocation, 
except for the $150,000 in CHDO administrative 
expenses. As noted in the Budget Section above, the 
proposed resolution would authorize administrative costs 
of $855,900, including $150,000 to be allocated in equal 
amounts of $50,000 to the Chinese Community Housing 
Corporation, the Mission Housing Development 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



17 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Corporation, and the Tenderloin Neighborhood 
Development Corporation (the Community Housing 
Development Organizations). MOH is requesting a 
budget of $705,900 (Mayor's Office of Housing 
Administrative Expenses of $524,905 and Other 
Administrative Expenses of $180,995), which is $1,800 
less than the maximum allowable amount of $707,700, for 
administration of the HOME Program. The proposed 
$855,900 for administrative expenses are as follows: 

HOME Administrative Budget 

Mayor's Office of Housing Administration 

(See Attachment I) $524,905 

Catholic Chanties $13,526 

Other Administrative Expenses 167.469 180.995 

Subtotal Administrative Expenses $705,900 

Community Housing Development 

Corporation's Administrative Expenses 150.000 

Total $855,900 

The MOH administrative budget of $524,905 includes 4.9 
positions for the MOH. Attachment I lists the positions 
and the salary amounts for each position. 

The Other Administrative Expenses of $167,469 are as 
follows: 

City Attorney S 47,469 

Environmental Review Consultant 45,000 

City Planning 25.000 

Total $167,469 

The proposed administrative budget of $524,905 includes 
a .50 FTE 9774 Sr. Community Development Specialist. 
However, the MOH budgeted a full years salary of 
$61,309 for this position instead of the $30,862 which is 
required for the .50 FTE position. (The remaining .50 FTE 
salary funds for this position is budgeted in the 
Community Development Block Grant Program.) 
Accordingly the proposed HOME budget should be 
reduced as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Salary $30,444 

Fringe Benefits 6,698 

Less Salary Savings (1,857) 

Add Negotiated Increase 1.486 

Total Reduction $36,771 



3. Section l.C. of MOH Criteria and Procedures for 
allocating HOME Program funds requires that the 
Director of the Mayor's Office of Housing submit an 
Annual Report, due on March 31 of each year for the 
preceding calendar year, to the Board of Supervisors 
providing an accounting of all HOME program funds 
received by the City and how the funds were expended, 
including specific project information. According to Mr. 
LaTorre, the most recent Annual Report, for calendar 
year 1997, was submitted to the Board of Supervisors on 
March 30, 1998. 

4. In accordance with procedures developed by the MOH 
and previously approved by the Board of Supervisors, 
loans to private developers may be interest bearing or 
interest free and loan principal to the private developers 
may be deferred. The terms under which interest and/or 
principal are paid by the developer are determined by the 
Mayor based on the financial feasibility of each project. 
According to Mr. LaTorre, the reason that the Mayor may 
decide not to charge interest to private developers or may 
decide to defer loan repayments due from private 
developers is that private developers may have agreed to 
establish very low rents in their privately-developed 
affordable housing, thereby resulting in the developers' 
inability to afford to make the total required interest 
and/or principal payments. The attached memorandum 
(Attachment II) from Mr. LaTorre explains how MOH will 
document financial information provided by private 
developers which could result in the Mayor deciding (a) 
not to charge interest to private developers, and/or (b) 
permitting private developers to defer their loan 
repayments to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

1Q 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Recommendations: 1. Reduce the proposed MOH Administrative budget by 

$36,771 from $524,905 to $488,134 as shown in comment 
2 above to increase the level of funding for other eligible 
HOME activities. 

2. Approval of the proposed resolution is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Attachment I 



Mayor's Office of Housing HOME Administrative Expenditure Schedule 1999 



P»ra | Grant | 


Mat I ID j Line Item 




Description 


Sab-Object | Administration | 


|MOHM98 | 


21H | |Class 




fide 


FTE L 


|MOHM98 | 


21H 


1 369 1 Special Assistant X 


3.10 S 


151,552 






MOHM98 | 


21H 




1371 ISpecial Assistant XTV 


0.50| S 


25369 






MOHM98 I 


21H I 


1373|Special Assistant XII 


0.50 1 S 


40,872 






MOHM98 


21H I 


1 377 1 Special Assistant Program Development 


0.10 s 


9.936 1 






MOHM98 


21H I 


1632|Senior Account Clerk 


0.20 1 3 


8,413 | 






MOHM98 | 


21H 




9774 |Sr Community Development Specialist 


0.50J S 


61 309 






I 




1 


1 






MOHM98 


21H 




Personnel 


|Labor Costs 


4.90 1 S 


297,451 






MOHM98 


21H 




Personnel 


Labor Costs Fringes (3l32 


Is 


65,439 






MOHM98 


21H 




Personnel 


Labor Costs Total 




s 


362.890 


412184 




MOHM98 


21H 




Persond 


Salary Savings (21.05 




s 


(18.145) 


-20609 






21H 




Personel 


Negotiated Increases (2.04 


| s 


14.516 
















1 






MOHM98 


21H 




Conferences & Travel 


Conference Travel 




s 


5.000 


S 


5,000 




MOHM98 


21H 




Drayage/Frci ght 


File Safe 




s 


500 


s 


500 




MOHM98 


21H 




Equipment 


Lease Photocopier 




s 


5,000 


s 


5.000 




MOHM98 


2IH 




Equipment 


Maintenance & Repair 




s 


1,000 


s 


1.000 




MOHM98 


21H 




Equipment 


Auto Fuel &. Maintenance 




s 


1.000 


s 


1.000 




MOHM98 


21H 




Legal & Display Advertising 






s 


1.000 


s 


1.000 




MOHM98 


21H 




Memberships 






s 


1.500 


s 


1.500 




MOHM98 


21H 




Postage 






s 


2.500 


s 


2,500 




iMOHM98 


21H 




Printing 






s 


5.000 


s 


5.000 


JMOHM98 


21H 




Rental Space 


25 Van Ness Lease 




s 


70,644 


s 


50.000 




MOHM98 


21H 




Supplies 


Office Supplies 




s 


5.000 


s 


5.000 




MOHM98 


21H 




Telecommunications 


Telephone Services 




s 


5.000 


s 


5.000 




MOHM98 


21H 




Training 






s 


2.500 I S 


2.500 






















MOHM98 


2IH 




TOTAL 






s 


464.905 


s 


476375 






















MOHM98 


21H 




Professional Services 


Environmental Review 




s 


15,000 


s 


15.000 




MOHM98 


21H 




Professional Services 


City Planning 




s 


10,000 


s 


10,000 




MOHM98 


21H 




Professional Services 


City Attorney 


s 


25.000 


s 


25.000 




MOHM98 


21H 


1 Professional Services 


Real Estate 










MOHM98 


21H 




Professional Services 


ADA 










MOHM98 


21H 




Professional Services 


Other 


« 


10,000 


s 


10.000 
















|MOHM98 


21H 




Total HOME 




1 s 


524,905 | S 


536375 



12/16/98 



01/25/99 MON 17:44 FAX 415 252 3140 MAYOR - HOUSING _ 

Attachment II 



MEMORANDUM 




MAYOR'S OFFICE OF HOUSING 

January 25, 1999 

TO: Bill Courtright, Budget Analyst 

FROM: Joe LaTorre 

SUBJECT: Determination of Eligibility for Repayment and/or Interest Deferral or 
Forgiveness for HOME Program Loans 



Per your request for additional information, please note that the Criteria and Procedures for 
Allocating Home Program Funds approved by the Board of Supervisors in January 1 994 
provide that The Mayor shall determine the terms under which interest and/or principal 
shall be paid by Developer. ... For all HOME-assisted projects other than those funded 
under the RMF Program, deferred loans may be structured so as to require payment at the 
end of the Term, or to be forgiven, depending on the financial feasibility of the project. 
RMF loans may not be forgiven under any circumstances." 

Financial feasibility is based on the proposed structure of rents and operating expenses of 
the development and upon the availability and requirements of other funding sources for 
the development In most cases, MOH seeks to regulate rents at as low a ievel as possible, 
which precludes the possibility of payment of debt service (whether principal or interest). 
In addition, restricted rents limit the market value of the property, meaning funds might not 
be available at the end of the loan Term to repay the loan. 

Documentation of the proposed rent structure, operating budget, and sources and uses of 
development funds is provided to MOH by the Developer in its application for funds. 
These budgets are reviewed by MOH staff and evaluated in staff analysis provided to the 
Housing Development Loan Committee established by the Criteria and Procedures . Staff 
will recommend a proposed structure for interest and principal repayment to the 
Committee and, if approved, to the Mayor at the time the development is approved. 

Upon completion of the development, the Developer is monitored annually regarding its 
rents and operating budget to ensure that the rents are within the regulated amount and 
that the property is being maintained in accordance with program requirements. The 
results of this monitoring is included in MOH's Annual Performance Report to HUD for the 
HOME and other federal programs. 



25 VAN NESS AVENUE, SUITE 600 • SAN FRANCISCO, CA 94102 * (415)252-3177 ' FAX (415) 252-3140 

22 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 4 - File 99-0091 



Department: 



Item: 



Description: 



Department of Public Works (DPW) 
Recreation and Park Department (RPD) 

Ordinance transferring jurisdiction over certain real 
property located at Drumm Street between Clay and 
Washington Streets, described generally as Assessor's 
Block 202, Lots 6, 14 and a portion of 15, excluding the 
subsurface rights thereof, and a portion of Assessor's 
Block 203, Lot 14, from the Department of Public Works 
to the Recreation and Park Commission; and providing 
that no building, improvement or structure may be 
constructed on the surfaces of such parcels and adjoining 
Assessor's Block 202, Lot 18. 

The proposed ordinance would transfer jurisdiction over 
certain real property from DPW to RPD excluding the 
subsurface rights to a portion of the property. According 
to Mr. Joel Robinson of RPD, approval of this ordinance 
would preserve the property for use as open space subject 
to the possible construction of an underground parking 
facility on this property. The construction of an 
underground parking facility would require separate 
approval by the Board of Supervisors. 

On July 18, 1994, the City acquired from the State certain 
real property comprised of Assessor's Block 202, Lots 6, 14 
and portion of 15, and a portion of Assessor's Block 203, 
Lot 14 (collectively, the "Property"). The Property is 
located immediately northwest of Justin Herman Plaza, 
between the Embarcadero to the west and Davis Street to 
the east, and between Washington Street to the north and 
Clay Street to the south, as shown on the attached map. 
The Property is currently held under the jurisdiction of 
the Department of Public Works. The Recreation and 
Park Commission has jurisdiction over adjoining 
property, Assessor's Block 202, Lot 18 (Lot 18). The 
subject Property and the adjoining property are used as 
open space. 

The proposed ordinance would subject the Property and 
the adjoining Lot 18 to the restriction that no building, 
improvement or structure may be constructed on the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



23 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



surfaces of the Property and Lot 18, provided that the 
following improvements would not be prohibited: (a) 
landscape improvements such as pedestrian pathways, 
gazebos, tables, benches lighting fixtures, trash 
receptacles, automatic public toilets, bicycle racks and 
drinking fountains, and (b) improvements necessary to 
the functioning of a potential underground parking 
facility if such improvements cannot be constructed 
underground. 

Jurisdiction over portions of the Property's subsurface, 
specifically Assessor's Block 202, Lots 6, 14, and a portion 
of 15, is to be retained by DPW because on September 18, 
1996, the Board of Supervisors preliminarily endorsed 
construction of an underground public parking facility 
with a capacity for up to 350 vehicles on this Property 
(File No. 47-96-8). This endorsement by the Board of 
Supervisors was subject to the condition that construction 
of an underground parking facility would not commence 
until the City executed a contract with a developer for a 
major renovation of the Ferry Building, located 
approximately 500 feet to the east of the Subject Property, 
across the Embarcadero, with the understanding, 
according to Mr. Alec Bash of the Port, that any such 
parking facility would serve the public needs associated 
with a renovated Ferry Building. According to the 
proposed ordinance, the Port is currently negotiating with 
a developer, William Wilson and Associates, for the 
renovation of the Ferry Building. 

On November 4, 1996, the Board of Supervisors approved 
the Final Environmental Impact Report for the 
Alternatives to Replacement of the Embarcadero Freeway 
and the Terminal Separator Structure, which set forth 
several surface traffic improvements, including the 
widening of Washington and Clay Streets between Davis 
and Drumm Streets, which would consist of certain 
improvements to a portion of Block 203, Lot 14 (File No. 
271-96-3). The proposed ordinance states that to "widen 
Washington and Clay Streets, the property line for 
Assessor's block 203, Lot 14 would be shifted 
approximately 17.40 feet to the south on the Washington 
Street frontage and approximately 17.61 feet to the north 
on the Clay Street frontage and two portions of Assessor's 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Comment: 



Recommendation: 



Block 203 (collectively the "Reserved Street Widening 
Parcels), will thereby be a part of the widened 
Washington and Clay Streets." 

Ms. Mariam Morley of the City Attorney's Office states 
that these Reserved Street Widening Parcels do not 
consist of that portion of Block 203, Lot 14 included in the 
Property proposed to be transferred from the jurisdiction 
of DPW to the jurisdiction of RPD. However, this proposed 
ordinance states "In the event that Washington and Clay 
streets are not widened within five years after the 
effective date of this Ordinance, the Director of Property 
shall recommend to the Board of Supervisors that, subject 
to the California Environmental Quality Act and other 
applicable laws, the jurisdiction of the Reserved Street 
Widening Parcels be transferred to the Recreation and 
Park Commission" and that the property comprising the 
Reserved Street Widening Parcels be subjected to the 
same development limitations as the subject Property. 
Therefore, according to Ms. Morley, the Reserved Street 
Widening Parcels, as land adjoining the subject Property 
described above, would serve as preserved open space in 
combination with the Property. 

As previously noted, the Property is currently used as 
open space. Mr. Robinson stated that RPD already 
provides gardeners to maintain the Property, excluding 
the portion of Assessor's Block 203, Lot 14, which is 
maintained by DPW. Mr. Robinson advises that RPD is 
not planning any improvements to the Property and 
therefore, Mr. Robinson anticipates no fiscal impact from 
the proposed jurisdictional transfer. 

Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



02/04/1999 11:58 415-554-8243 



ENGINEERING BUREAU , PAGE 82 

Attachment . I 

^cTts ^H 

^/ ! Hi 




26 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 5 - File 98-2131 



Department: 



Item: 



Overview: 



Parking and Traffic Commission 
Recreation and Parks Commission 

In connection with the financing of improvements to the 
Union Square Public Parking Garage ("Union Square 
Garage"), and in connection with improvements to Union 
Square Park, the proposed ordinance would: 

(1) approve and authorize the execution and delivery of a 
lease of the Union Square Public Parking Garage 
("Union Square Garage Lease"); 

(2) approve the issuance of parking revenue bonds ("1999 
Parking Revenue Bonds") by the City of San Francisco 
Uptown Parking Corporation ("Uptown Corporation"); 

(3) approve and authorize an amendment to the Sutter- 
Stockton Garage Lease between the City and Uptown 
Corporation ("Sutter-Stockton Garage Lease"); 

(4) approve and authorize an amendment to the 1993 
Payment Agreement between the City, Uptown 
Corporation, and the Downtown Corporation ("1993 
Payment Agreement"); 

(5) approve and authorize a Supplemental Park 
Maintenance Agreement between the City and 
Uptown Corporation; and 

(6) approve construction of Union Square Park 
improvements pursuant to Section 4.113(1) of the 
Charter concerning the improvements to Union Square 
Park. 

Union Square Garage and Union Square Park 

Currently the Union Square Garage is operated by City Park 
under a monthly lease with the City, acting by and through 
the Department of Parking and Traffic (DPT). Parking 
revenues generated from the operation of the Union Square 
Garage are General Fund revenues that flow directly to the 
Recreation and Park Department. 

Union Square Park is maintained by the City, acting by and 
through the Recreation and Park Department. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Sutter-Stockton Garage and Uptown Corporation 

Uptown Corporation is a non-profit organization created for 
the purpose of financing the construction of the Sutter- 
Stockton Public Parking Garage ("Sutter-Stockton Garage"), 
located at Sutter and Stockton Streets. Both Uptown 
Corporation and the City are parties to the existing Sutter- 
Stockton Garage Lease, which was entered into on May 5, 
1959. 

5 th and Mission Garage and Downtown Corporation 

The Sutter-Stockton Garage is separate and distinct from the 
5 th and Mission Street Public Parking Garage ("5 th and 
Mission Garage"), which was constructed in 1965 using 
Parking Revenue Bonds issued by the City of San Francisco 
Downtown Parking Corporation ("Downtown Corporation"), 
another non-profit corporation, created for the purpose of 
financing the construction of the 5 th and Mission Garage. 

Additional Financial Security for 5 th and Mission Garage 

In 1993, Downtown Corporation needed additional financial 
security to issue $15,800,000 in parking revenue bonds 
("Downtown Bonds") for improvements to 5 th and Mission 
Garage. The term "security" refers to features of a bond 
issuance, such as bond insurance or pledged revenues, which 
enhance the bond's credit worthiness. 

In order to obtain additional security for the Downtown 
Bonds, the 1993 Payment Agreement was entered into 
between Uptown Corporation. Downtown Corporation, and 
the City. Under the 1993 Payment Agreement, Uptown 
Corporation pledged all of Sutter-Stockton's net parking 
revenues (net revenues after payment of operating costs, 
parking taxes, and related expenses) as additional security 
for the debt service of the Downtown Bonds, in the event that 
5 th and Mission Garage parking revenues proved to be 
insufficient for the payment of the debt service of the 
Downtown Bonds used to finance improvements to the 5 th 
and Mission Garage. 

Downtown Corporation has met the debt service 
requirements of the Downtown Bonds through its annual net 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



parking revenues. Therefore, no annual net parking 
revenues from Sutter-Stockton Garage have been expended 
for the debt service of the Downtown Bonds since 1993. 

Components of the Proposed Ordinance 

1. Under the proposed ordinance, Uptown Corporation and 
the City would enter into the Union Square Garage 
Lease, which would provide for the proposed improvements 
of the Union Square Garage and the Union Square Park. 

2. Under the proposed ordinance, Uptown Corporation 
would issue the 1999 Parking Revenue Bonds for the 
improvements of the Union Square Garage and Union 
Square Park. 

Contributions to the debt service of the proposed 1999 
Parking Revenue Bonds would be made by the Recreation 
and Park Department through a reduction in the General 
Fund revenue received from the Union Square Garage by the 
Recreation and Park Department. 

Contributions to the debt service of the proposed 1999 
Parking Revenue Bonds would also be made by Uptown 
Corporation, requiring the proposed amendments to two 
existing agreements, namely the Sutter-Stockton Garage 
Lease and the 1993 Payment Agreement. 

3. Uptown Corporation's contribution to the debt service of 
the proposed 1999 Parking Revenue Bonds for Union Square 
Garage and Union Square Park improvements would be 
made from surplus parking revenues from the Sutter- 
Stockton Garage. According to Mr. Michael Cohen of the 
City Attorney's Office, because this source of revenue would 
be needed for the life of the debt service of the proposed 1999 
Parking Revenue Bonds, the existing Sutter-Stockton 
Garage Lease between the City and Uptown Corporation 
must be extended. 

4. Uptown Corporation's contribution to the debt service of 
the proposed 1999 Parking Revenue Bonds for Union Square 
Garage and Union Square Park improvements would also 
require amending the 1993 Payment Agreement. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



5. Also under the proposed ordinance, the City and Uptown 
Corporation would enter into a Supplemental 
Maintenance Agreement for Uptown Corporation to 
provide supplemental park maintenance of the Union Square 
Park. The estimated annual park maintenance cost is 
$150,000 per year, escalating annually by 3 percent, in 
addition to the maintenance services that are currently 
provided by the Recreation and Park Department. According 
to Mr. Richard Hillis, Special Assistant to the Mayor, these 
services would be provided at the discretion of the Recreation 
and Park Commission. This cost would be paid from the 
reduction in parking revenue collected from the Union 
Square Garage to the Recreation and Park Department's 
General Fund budget. 

6. The proposed ordinance further seeks approval from the 
Board of Supervisors for the proposed improvements on the 
Union Square Park, pursuant to Charter Section 4.113(1). 



Detailed Description: 



Lessor of Proposed 
Union Square 
Garage Lease: 



City of San Francisco, acting by and through the Department 
of Parking and Traffic (DPT). 



Lessee of Proposed 
Union Square 

Garage Lease: City of San Francisco Uptown Parking Corporation ("Uptown 

Corporation"), a non-profit public benefit corporation. 



Location: 



Square Footage 
and Capacity of 
Union Square 
Garage: 



The Union Square Garage is an underground, four-story 
building bordered by Geary Street, Powell Street, Post 
Street, and Stockton Street, beneath the Union Square Park. 



The Union Square Garage contains 424.000 square feet and 
has a capacity for 1,030 vehicles. 



Square Footage 
of Union Square 
Park: 



The Union Square Park consists of 113.440 square feet of 
above-ground land. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Term of Proposed 
Union Square 
Garage Lease: 



The existing operating agreement of the Union Square 
Garage is a month-to-month agreement between City Park, a 
parking operator, and the City, acting by and through the 
DPT. Thus, this agreement could be terminated within a 
month's notice. 

The proposed term of the Union Square Garage Lease is 

the earlier of 50 years or the date on which the proposed 
1999 Parking Revenue Bonds are fully redeemed over the 
proposed 25-year term of the bonds, commencing in 
February, 1999 and terminating in February, 2024. 



Annual Rental 
Rate Payable 
to City by Union 
Square Garage 
Operator: 



Under Current Agreement 

Under the current agreement of the Union Square Garage, 
City Park as parking operator pays the Recreation and Park 
Department 79.746 percent of net parking revenues (after 
payment of Parking Taxes) collected from the operation of 
the Union Square Garage. 

For FY 1998-1999, the estimated revenues from City Park to 
the Recreation and Park Department (net revenue after 
payment of operating costs, Parking Taxes, and related 
expenses) are $3,508,732, based on 79.746 percent of net 
parking revenues (after payment of Parking Taxes) of 
$4,678,732. These revenues are used as a source of funds in 
the FY 1998-1999 Recreation and Park Department General 
Fund budget. In addition, the City is expected to collect 
$1,027,039 in Parking Taxes, based on 25 percent of parking 
charges. Estimated parking receipts to the Union Square 
Garage in FY 1998-1999 are $5,705,771, which include 
parking charges plus 25 percent Parking Tax. (Parking 
revenue received from hotel guests is exempt from Parking 
Taxes). 

Under Proposed Union Square Garage Lease 

Under the proposed Union Square Garage Lease, Uptown 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Corporation would issue a Request for Proposals (RFP) for 
the management of the Union Square Garage. 

The Parking Authority estimates that the annual net 
parking revenue from the operation of the Union Square 
Garage would be approximately $4,066,611 per year in FY 
2000-2001 (net revenue after payment of operating costs, 
Parking Taxes, and related expenses) when the proposed 
improvements are completed, an increase of over $577,879 
annually over FY 1998-1999. The City is also expected to 
collect Parking Taxes, estimated at $1,113,526 in FY' 2000- 
2001, an increase of $86,487 annually over FY 1998-1999. 



Annual 
Maintenance 
Costs of the 
Union Square 
Park: 



Proposed 
Improvements to 
Union Square 
Garage and 
Union 
Square Park: 



Currently, the Union Square Park is maintained by the 
Recz-eation and Park Department through both gardening 
and custodial services. For FY 1998-1999, the Recreation 
and Park Department's expenditures for the maintenance of 
Union Square Park is estimated to be $125,000. 



Mr. John Barber of the Parking Authority reports that the 
Union Square Garage, built in 1941. would require 
improvements that involve the construction of new elevators, 
stairs, fire exits, and restrooms, and installing improved 
ventilation and new lighting. Mr. Barber states that the 
proposed improvements would bring the Union Square 
Garage in compliance with existing building codes and with 
American Disabilities Act (ADA) requirements. None of the 
proposed improvement to the Union Square Garage are 
"seismic retrofitting" improvements. 

Mr. Don Alameida of the Department of Public Works (DPW) 
and Mr. Ernie Prindle of the Recreation and Park 
Department report that improvements to the Union Square 
Park would involve the following: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



• Flattening the ground surface of the Union Square Park; 

• Building two new structures (totaling 2,500 square feet) 
that would serve as a cafe with separate indoor seating, 
restroom facilities, and ticket booth and building an open 
stage area (totaling 2,800 square feet); and 

• Replacing the surface with new landscaping and new 
hard-surface plaza areas for outdoor seating, garden 
terraces, lawn terraces, and a central water feature by 
the existing Dewey Memorial statue. 

Mr. Prindle notes that the Recreation and Park Department 
intends to provide more services to the citizens of San 
Francisco and to receive additional concessionaire revenues 
through such concessions as a cafe operation and additional 
permit fees, estimated at approximately $50,000 per year. 

Mr. Cohen notes that two-thirds Board of Supervisors 
approval is needed in order for the proposed improvements to 
Union Square Park, pursuant to Charter Section 4.113 (1). 
Section 4.113(1) of the Charter states: "No building or 
structure except for nurseries, equipment and storage 
facilities and comfort stations shall be erected, enlarged or 
expanded in Golden Gate Park or Union Square Park unless 
such action has been approved by a vote of two-thirds of the 
Board of Supervisors." 

Attachment I provided by Ms. Julia Dawson of the 
Department of Parking and Traffic (DPT), contains the 
estimated costs for the proposed improvements to the Union 
Square Garage. As shown in Attachment I, the total 
estimated Union Square Garage improvement costs are 
$9,150,000. Attachment I also contains the estimated costs 
for the proposed improvements to the Union Square Park. 
As shown in Attachment I, the total estimated Union Square 
Park improvement costs are $9,850,000. 

Total projected costs associated with the proposed 
improvements to the Union Square Garage and the Union 
Square Park are therefore $19,000,000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Financing of 
Proposed 
Improvements to 
Union Square 
Garage and 

Union Square Park: Proposed Issuance of 

1999 Parking Revenue Bonds 

Under the proposed ordinance. Uptown Corporation would 
issue a maximum of $19,000,000 in City of San Francisco 
Uptown Parking Corporation Parking Revenue Bonds (the 
"1999 Parking Revenue Bonds") in order to finance the 
proposed improvements to the Union Square Garage and to 
the Union Square Park. 

Proposed Sources of Repayment 
for 1999 Parking Revenue Bonds 

Mr. Hillis and Ms. Dawson state that the debt service for the 
proposed 1999 Parking Revenue Bonds, which would be 
$1,305,000 per year for 25 years, would be paid from a 
combination of funds from (a) the Recreation and Park 
Department and (b) Uptown Corporation as follows: 

(a) The contribution from the Recreation and Park 
Department would be approximately $17,608 for the first 
year and between $305,650 to $805,650 per year for 
subsequent years through a reduction to its General Fund 
Revenue from Union Square Garage operations. According 
to Mr. Hillis, this reduction would be offset by increased 
parking garage revenues, increased park revenues, and 
decreased garage operating expenses. 

Attachment II contains the schedule of annual reductions in 
net parking revenues to the Recreation and Park 
Department for the next seven years, beginning FY 1998- 
1999, as a result of the annual contribution by the 
Recreation and Park Department to the debt service of the 
proposed 1999 Parking Revenue Bonds. 

(b) Uptown Corporation's contribution to the debt service of 
the proposed 1999 Parking Revenue Bonds is shown in 
Attachment III, a memo from the Mayor's Office, which 
contains the proposed schedule of annual payments from FY 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Proposed 
Amendments 
to Existing 
Agreements: 



1998-1999 through the termination of the proposed lease. 
Uptown Corporation's contribution would consist of $200,000 
for the first year; $1,000,000 for the second year; and 
between $500,000 and $700,000 per year in subsequent 
years of the debt service. 

The source of Uptown Corporation's debt service contribution 
would be the Surplus Revenue Fund of Uptown Corporation 
or, specifically, the Capital Improvements Account, which 
receives 15 percent of Sutter-Stockton Garage revenues. The 
current balance of the Capital Improvements Account as of 
November, 1998 is $960,000. Uptown Corporation's 
contribution to the debt service of the proposed 1999 Parking 
Revenue Bonds would require amending two existing 
agreements as explained below. 



According to Mr. Barber and Mr. Cohen, financing the 
proposed improvements to the Union Square Garage and the 
Union Square Park would require amending two existing 
agreements, namely the 1993 Payment Agreement and the 
Sutter-Stockton Garage Lease. 

As previously noted, the 1993 Payment Agreement is an 

existing agreement between Uptown Corporation, Downtown 
Corporation, and the City through which Uptown 
Corporation pledged all annual net parking revenues 
collected from the operation of the Sutter-Stockton Garage as 
additional security for the Downtown Bonds for 
improvements to the 5 th and Mission Garage. 

Proposed Amendment to the 
1993 Payment Agreement 

The proposed Amendment to the 1993 Payment Agreement 
would accomplish two things: (a) permit the transfer all the 
surplus revenues from net parking revenues of the Sutter- 
Stockton Garage, that were not otherwise used to fulfill the 
1993 pledge to the debt service of the Downtown Bonds for 
improvements to the 5 th and Mission Garage, to Uptown 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Corporation's 1999 Revenue Fund for application to the debt 
service of the proposed 1999 Parking Revenue Bonds 
associated with the improvements of the Union Square 
Garage and the Union Square Park. Thereafter, Sutter- 
Stockton Garage's net parking revenues of an estimated 
$677,508 for FY 1998-1999 would instead be used by Uptown 
Corporation to make contributions toward the debt service of 
the $1,305,000 per year for the proposed 1999 Parking 
Revenue Bonds related to the financing of the Union Square 
Garage and Union Square Park. 

The proposed Amendment to the 1993 Payment Agreement 
would also (b) pledge all of the annual net parking revenue 
collected from the operation of the Sutter-Stockton Garage as 
additional security for the repayment of the proposed 1999 
Parking Revenue Bonds related to the proposed 
improvements to the Union Square Garage and the Union 
Square Park. 

Proposed Extension of the Term 
of the Sutter-Stockton Lease 

The proposed Amendment to the Sutter-Stockton Garage 
Lease would extend the Sutter-Stockton Garage Lease from 
May 5, 2023 to the earlier of either May 5. 2035 or the date 
both the proposed 1999 Parking Revenue Bonds (used to 
fund the proposed improvements to the Union Square 
Garage and Union Square Park) and the Downtown Bonds 
(related to the improvements to the 5 th and Mission Garage) 
have been paid in full. 



Proposed 
Additional Park 
Maintenance 
By Uptown 
Corporation: 



Under the proposed Supplemental Maintenance 
Agreement, Uptown Corporation would provide park 
maintenance services for the City in addition Co those which 
the Recreation and Park Department already provides for 
the Union Square Park. The proposed term of the 
Supplement Maintenance Agreement is 5 years, with three 
5-year options available to both the City and Uptown 
Corporation. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

These additional park maintenance services comprise 
primarily custodial services, and would be paid for from the 
annual net parking revenues generated from the operation of 
the Union Square Garage. 

As Attachment II shows, the cost of these additional park 
maintenance services, estimated to be $75,000 for FY 2000- 
2001 and $150,000 per year starting in FY 2001-2002, and 
escalating by 3 percent annually thereafter, is in addition to 
the proposed debt service contribution that the Recreation 
and Park Department would make to the debt service of the 
proposed 1999 Parking Revenue Bonds. 

Comments: 1. Issuance of the 1999 Parking Revenue Bonds 

According to Ms. Dawson, the estimated interest rate of the 
repayment of the proposed 1999 Parking Revenue Bonds 
would be approximately 5.5%, and the rating is expected to 
be "A." The term of the debt service would be 25 years at 
^ $1,305,000 million per year. By the end of the proposed debt 

service, the total amount of repayment would be 
$32,625,000, based on $1,305,000 per year times 25 years, 
$19,000,000 of which would have been paid toward principal 
and $13,625,000 of which would have been paid toward 
interest. 

According to Ms. Dawson, the costs of the issuance of the 
proposed 1999 Parking Revenue Bonds would be $375,000. 

2. Sutter-Stockton Garage's Capital Needs 

According to Mr. Hillis, the Sutter-Stockton Garage does not 
need any significant capital improvements in FY 1999-2000 
that would require using the Capital Improvements Account 
of the Surplus Revenue Fund of Uptown Corporation. Mr. 
Hillis notes that the expected annual surplus revenue to be 
collected from the operation of the Sutter-Stockton Garage is 
$677,508 in FY 1998-1999. Mr. Hillis estimates that Sutter- 
Stockton Garage will require $250,000 for capital 
improvements annually beginning FY 2000-2001. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

V? 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

3. Management of Union Square Garage 

According to Ms. Dawson, if the proposed Union Square 
Garage Lease is approved, the Parking and Traffic 
Commission would authorize the Uptown Parking 
Corporation to issue an RFP in order to select the most 
qualified proposal and to award a professional parking 
services agreement. Uptown Corporation would then present 
its selection to the Parking Authority for approval. This 
award of the contract would also be subject to approval by 
the Board of Supervisors. 

4. No Seismic Improvements 

The proposed ordinance states that the Union Square Garage 
would undergo "seismic retrofit improvements." However, 
the Budget Analyst's Office has found that no seismic 
retrofitting improvements will be made, and Mr. Cohen and 
Ms. Dawson concur with this finding. The proposed 
ordinance should therefore be amended to delete reference to 
seismic improvements. 

Mr. Cohen has stated that additional amendments to the 
proposed ordinance will be submitted directly to the Finance 
and Labor Committee. 

Summary: Components of the Proposed Ordinance 

The purpose of this ordinance is to arrange the financing for 
improvements to the Union Square Garage and the Union 
Square Park, estimated to cost a total of $19,000,000. 

The proposed ordinance would approve the Union Square 
Garage Lease between the City and Uptown Corporation, 
which would issue $19,000,000 in 1999 Parking Revenue 
Bonds for proposed improvements to both the Union 
Square Garage and the Union Square Park. L'ptown 
Corporation is a non-profit organization created for the 
purpose of financing the construction of the Sutter-Stockton 
Public Parking Garage ("Sutter-Stockton Garage"). The 
proposed ordinance would also approve the Supplemental 
Park Maintenance Agreement between the City and 
Uptown Corporation, which would provide additional park 
maintenance to supplement the maintenance services of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Recreation and Park Department at Union Square Park, 
at the request of the Recreation and Park Commission. The 
proposed ordinance would further approve the improvements 
to Union Square Park as required under Charter Section 
4.113(1). 

In order to finance the proposed improvements, amendments 
are proposed to two existing agreements. First , the Sutter- 
Stockton Garage Lease would be extended in order to 
provide the underlying stream of revenue for the life of the 
debt service of the proposed 1999 Parking Revenue 
Bonds, as well as to continue providing additional financial 
security for the debt service of the Downtown Bonds issued 
in 1993 for the 5th and Mission Garage improvements. The 
Downtown Bonds were issued by the Downtown Corporation, 
which is another non-profit corporation that was created for 
the purpose of financing the construction of the 5 th and 
Mission Garage. Second , the 1993 Payment Agreement 
between the City, Uptown Corporation and Downtown 
Corporation would be amended in order to permit the 
transfer of a portion of the surplus funds from the Sutter- 
Stockton Garage that were previously pledged but not used 
for improvements to the 5 th and Mission Garage. 

The 1993 Payment Agreement would be amended in order 
to pledge all of Sutter-Stockton Garage's net parking 
revenues for the debt service, and to enhance the financial 
security of, the proposed 1999 Parking Revenue Bonds. 

Fiscal Impacts of the Proposed Ordinance 

As a result of the proposed ordinance, the Recreation and 
Park Department's contribution to the debt service of the 
1999 Parking Revenue Bonds would be approximately 
$17,608 for the first year and between $305,650 to $805,650 
per year for subsequent years through a reduction to its 
General Fund Revenue from Union Square Garage 
operations. This reduction is expected to be offset by 
increased parking garage revenues, increased park revenues, 
and decreased garage operating expenses. Approximately 
$150,000 per year from the Recreation and Park 
Department's contribution, escalated by 3 percent annually, 
would pay for supplemental park maintenance services 
provided by Uptown Corporation for the Union Square Park. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Uptown Corporation's contribution to the debt service of the 
1999 Parking Revenue Bonds would be made from net 
parking revenues from the Sutter-Stockton Garage, and 
would consist of $200,000 for the first year; $1,000,000 for 
the second year; and between $500,000 and $700,000 per 
year in subsequent years of the debt service. 

i 
The cost of the additional park maintenance services to be 
provided by Uptown Corporation under the Supplemental 
Park Maintenance Agreement is estimated to be $75,000 
for FY 2000-2001 and $150,000 per year starting in FY 2001- 
2002, and escalating by 3 percent annually. 

No monies allocated to MUNI from parking garage revenues 
would be affected by this ordinance. 

Recommendation: Amend the proposed ordinance to reflect the fact that the 
proposed improvements to the Union Square Garage would 
not involve "seismic retrofit improvements 

Approval of the proposed ordinance, as amended, is a policy 
matter for the Board. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Attachment I 

Source: Den Alameida 

Department of Public 

_ Works 

Summary of Cost for Improvements to Union Square 

PER CIAC MEETING 



Garage improvements 

A DEMOLITION (Garage) Sl.5CO.000 

B INTERIOR GARAGE IMPROVEMENTS $4,300,000 

CONSTRUCTION ITEMS SUB-TOTAL $5,300,000 

General Contractor General Conditions S3C0.0Q0 

Construction Contingency S700.000 

SUB-TOTAL $6,300,000 

Permits, fees and Haz Mat MonL $600,000 

Inflation $200,000 

GARAGE CONSTRUCTION TOTAL $7,600,000 

GARAGE PROJECT COSTS 

DESIGN FEES $375,000 

BOND FINANCING $675,000 

GARAGE PROJECT TOTAL $9,150,000 

Plaza Improvements 

C OEMCLmONS (Plaza) $400,000 

D PLAZA LEVEL IMPROVEMENTS $5,500,000 

E RCCFTOP ARCHITECTURE -PHASED $700,000 

CONSTRUCTION ITEMS SUB-TOTAL $6,600,000 

General Contractor General Conditions $200,000 

Construction Contingency 800.000 

SUB-TOTAL 7,500,000 

Permits, fees and Haz Mat MonL 400.000 

Inflation 400.000 

construction total 3,400,000 

plaza project costs 

design fees $625.cc0 

bcnd Financing $325,000 

plaza project total $9,850,000 



Total Project 519,000,000 



il 



Attachment II 



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42 




FEB 05 '99 09: 14 FR MAYOR OFC./ECON. DEU.415 554 6018 TO 92520461 P. 02/04 

Att achment III 
4°i£u»?X fage 1 or j 

Office of the Mayor I»l4S32w]«I Willie Lewis Brown, Jr. 

san francisco 



UNION SQUARE RENOVATION 
PROJECT SUMMARY 

Background: 

In July 1 997, the City, SPUR, and San Francisco Beautiful sponsored a competition to 
redesign Union Square park. The goal of the competition was to transform Union 
Square park into a more inviting, usable and accessible public open space that will 
accommodate a variety of social and cultural activities. 

Over 300 participants submitted designs, and all were reviewed by a design jury 
consisting of Gerald Green, Director of the Department of Gty Planning; David 
Kelly, Industrial Designer; Thorn Mayne, Architect; Sheila Levrant de Bretteville, 
Professor of Art, Yale University, Achva Benzinberg Stein, Landscape Architect; 
Aaron Betsky, Curator of Architecture, San Francisco Museum of Modem Art; and 
Louis Meunier, Executive Vice President, Macy's. 

The jury selected five finalists, which were subsequendy reviewed by a panel of 
representatives from City Departments, including the Planning Department, 
Department of Public Works, and the Department of Parking and Traffic, and 
representatives from community organizations, including the Union Square 
Association. The panel selected the design by April Philips and Michael 
Fotheringham. 

For the past year, the Union Square Renovation Advisory Committee, consisting of 
representatives from City Departments and community' groups, has been acting as a 
steering committee for design development and implementation (see attached list of 
members of the Union Square Renovation Advisory Committee). 

Transaction Structure: 

The transaction documents submitted to the Board of Supervisors would enable 
Uptown Parking Corporation (Uptown), a non-profit garage corporation which has 
managed Sutter-Stockton garage for almost 40 years, to issue bonds to finance the 
renovations. Under the proposed transaction, Uptown would lease and operate the 
garage, as well as provide supplemental maintenance services to the park. 

401 VAN N6SS AVENUE. ROOM 3S8. SAN FRANCISCO. CALIFORNIA 94102 

(415) S54-S141 

RECYCLEO PAPER 

l.n 



FEB 05 '99 09=15 FR MAYOR OFC./ECON. DEU.415 554 6018 TO 92520461 P. 03/04 

Attachment III 
Page 2 of 3 



The proposed transaction consists of the following four components: 

1. The City, through its Department of Parking and Traffic, will lease the Union 
Square garage to Uptown, which they will improve and operate. The leasehold 
interest will allow Uptown to issue bonds, not to exceed %\9 million, to finance 
the proposed improvements to the garage and park. The DPT Commission will 
retain approval authority over garage rates, the annual garage capital and operating 
budgets, selection of the garage operator, and the final construction budget and 
proposed improvements to the garage. The lease term is the shorter of 50 years 
or the term of the bonds (expected to be 25 years). Net revenues from garage 
operations will continue to flow to the Recreation and Parks Department. 

2. The City, through its Recreation and Parks Department, will enter into a 
supplemental maintenance agreement with Uptown for Union Square park, 
portions of which are modeled after the agreement between the Redevelopment 
Agency and KTB Realty for maintenance of Yerba Buena Gardens. The Gry has 
requested this agreement to guarantee that the park improvements are maintained 
in a first-class condition, as well as to increase utilization of the park. Under the 
agreement, Uptown will provide additional services to the park (i.e. janitorial, 
gardening, and event coordination) beyond those that Rec/Park currently 
provides; however, Rec/Park would maintain its current staffing levels in the park. 
The Recreation and Parks Commission has approval authority over Uptown's 
annual park budget, Uptown's annual park work plan, conceptual and final design 
for the park improvements, and the final construcuon budget. The proposed 
lease term is 5 years with three 5 year options at both the City's and Uptown's 
option. 

3. The Gty and Uptown will enter into a payment agreement that will require 
Uptown to make annual contributions from its Sutter Stockton capital reserve 
account to partially finance the debt service on the Union Square bonds. 

4. The City will extend its current lease with Uptown for the Sutter Stockton Garage. 
In order to enter into the payment agreement, it is necessary to extend the term of 
the Sutter Stockton lease until the date when the Union Square bond are re-paid. 

Financing: 

The Department of Public Works has estimated that the total cost of implementing 
the selected design, as well as concurrent rehabilitation of the Union Square garage, is 



UL 



FEB 05 '99 09=15 FR MAYOR OFC./ECON. DEU.415 554 6018 TO 92520461 P.04/04 

Attachment III 
Page 3 of 3 



$19 million (see attachment). Totai debt service for a 519 million bond issuance is 
estimated at $1.3 million per year. The impact to Rec/Park's budget is significantly 
offset from contributions from Uptown's Sutter Stockton garage, reduced Union 
Square garage operating costs, and anticipated increases in Union Square garage 
revenues (see attached spreadsheet). 

As specified in the Payment Agreement, the annual payments from Uptown to the 
City for the Union Square bond debt service is as follows: 



FISCAL YEAR DEBT SERVICE 

CONTRIBUTION 

FY 98-99 $200,000 

FY 99-00 $1,000,000 

FY 00-01 $700,000 

FY 01-02 $600,000 

FY 02-03 $600,000 

FY 03-04 Thru Lease Termination $500,000 

In any given year, Uptown shall reduce their debt service contribution by the amount 
that Recreation and Park revenues from the use of Union Square Park exceed 
$100,000 in any such year. 



** TOTAL PAGE. 04 ** 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Item 6 - File 99-0155 

Department: 

Item: 



Amount: 



Subject Property: 



Mayor's Office of Public Finance 

Resolution declaring a surplus in the Project 
Improvement Fund for the Bayshore Hester 
Assessment District and directing the disbursement of 
this surplus. 

$30,000 

The Bayshore Hester Assessment District includes a 
two-acre housing subdivision consisting of 48 single- 
family housing units adjacent to U.S. Highway 101 to 
the east, Geneva Avenue to the south, John McClaren 
Park to the west and Mansell Street to the north. 



Source of Funds: 



Description: 



The Project Improvement Fund and the Debt Service 
Reserve Fund of the Bayshore Hester Assessment 
District. The Project Improvement Fund contains a 
portion of the proceeds from the sale of the Bayshore 
Hester Assessment District Limited Obligation 
Improvement Bonds and is specifically used for the 
acquisition of the public improvements in the District. 
The Debt Service Reserve Fund contains a fixed 
amount of funds to be used in the event other monies 
dedicated to pay debt service on the bonds are 
insufficient. The Project Improvement and the Debt 
Service Reserve Funds have a current combined 
surplus balance of $35,297, according to Ms. Laura 
Opsahl of the Mayor's Office of Public Finance. 

Bayside Bayshore Hester Development and Bayshore 
Hester Associates were the original property owners 
and developers of the two-acre housing subdivision. 
The Board of Supervisors approved the creation of a 
Bayshore Hester Assessment District in August of 
1995 for the purpose of financing public improvements 
through assessments on the property owners within 
the District (Resolution No. 589-95). 

Resolution No. 589-95 authorized the City enter into a 
Public Improvement Agreement with the developers of 
the Bayshore Hestor subdivision project, under which 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

the developers agreed to construct a new public right- 
of-way comprising curbs, gutters, sidewalks, joint 
utilities trenches for electricity, gas, telephone and 
cable television, water lines, sewer lines, street lights, 
and fire hydrants. The cost of these public 
improvements was $746,982 and such costs were 
advanced by the developers. The net contribution by 
the developers toward the cost of these improvements 
was $54,801, as shown in the table below. 

In June of 1996, the Board of Supervisors approved an 
Acquisition and Funding Agreement between the City 
and the developers, under which the City agreed to 
acquire the public improvements after all construction 
of such improvements was completed. In June of 1996, 
the City issued $1,030,000 in Bayshore Hester 
Assessment District Limited Obligation Improvement 
Bonds in order to pay for the acquisition of these 
public improvements. The following is a breakdown of 
the sources and uses of the $1,030,000 of bond funds: 

Public Improvements $746,982 

Debt Service Reserve Fund 94,400 

Capitalized Interest 97,819 

Costs of Issuance 145.600 

Subtotal $1,084,801 

Developer Contribution (54,801) 

Total $1,030,000 

Ms. Opsahl reports that in September of 1998, when 
the public improvements were completed, the City 
reimbursed the developers $746,982 for the public 
improvements. After such reimbursement, a balance of 
$35,297 in interest earnings remained in the Project 
Improvement Fund and the Debt Service Reserve 
Fund. The proposed resolution would declare these 
funds to be surplus to the needs of the Bayshore 
Hester Assessment District and would direct the 
disbursement of the $35,297 of interest earnings to the 
redemption of $30,000 of the outstanding bonds. 

Comments: 1. Ms. Opsahl reports that the assessments collected 

from the Districts homeowners are used to pay for the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

A7 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



debt service on the bonds. According to Mr. Dave 
Sanchez of the City Attorney's Office, no City funds 
are being used to pay for the costs of the bonds. The 
annual assessment payments paid by each property 
owner in the District in FY 1998-1999 averaged 
approximately $1,755, based on the size of the 
individual lots and the benefit each parcel receives 
from the improvements made to the District. 

2. According to Ms. Opsahl, from June of 1996, when 
the bonds were sold, until September of 1998, when 
the public improvements were completed, the bond 
proceeds deposited in the Improvement Fund and the 
Debt Service Reserve Fund earned interest. This 
additional interest currently totals $35,297. Ms. 
Opsahl notes that according to legal requirements, 
once the construction, costs for the public 
improvements have been paid and the construction 
completed, any surplus funds must be used for the 
redemption of the bonds. 

3. In addition, Ms. Opsahl reports that the 
bondholders must be paid a premium of three percent 
of the $30,000 bond amount to be redeemed, or $900 
for the early redemption of the bonds. According to Ms. 
Opsahl, given the $900 that is needed to pay the 
bondholders and since the bonds are issued in 
denominations of $5,000, the maximum amount of 
bonds that can be redeemed from the existing surplus 
interest earnings of $35,297 is $30,000. The 
remaining amount of $4,397 ($35,297 current interest 
earnings less $30,000 of bonds to be redeemed less 
$900 premium paid to bondholders) will be transferred 
to the bond fund and applied to future debt service 
payments. 

4. According to Ms. Opsahl, as of March 2, 1999, the 
total outstanding debt service remaining on the bonds 
will be $2,308,691, including principal and interest. 
However, after the proposed redemption of $30,000 in 
bonds, a total of $2,227,616 would remain outstanding. 
This reduced debt service balance would result in a 
savings to the District in the amount of $81,075 in 
debt service payments, according to Ms. Opsahl. Since 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



the debt service is paid from the homeowners' 
assessments, the amount of $81,075 would effectively 
constitute a reduction in homeowner assessments in 
the Bayshore Hester Assessment District. Ms. Opsahl 
estimates that this reduction of $81,075 will result in 
an average savings of approximately $62.55 in 
assessments paid by each homeowner for FY 1998-99. 
As indicated above, the average assessment per 
homeowner in FY 1998-99 is $1,755. Therefore, an 
average reduction of approximately $62.55 would 
result in an average assessment of $1,692.45 per 
homeowner in FY' 1998-99. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Items 7 and 8 - Files 99-0041 and 99-0042 



Department: 
Items: 



Department of Human Resources (DHR) 

File 99-0041: Ordinance amending Ordinance No. 259-97 
to implement the provisions of an arbitrator's award 
amending the provisions of the Memorandum of 
Understanding (MOU) between the Union of American 
Physicians and Dentists and the City and County of San 
Francisco providing for a one-time 2.5% bonus on July 1, 
1999, in lieu of an incentive-based bonus, for Bargaining 
Unit 8CC. 



File 99-0042: Ordinance amending Ordinance No. 258-97 
to implement the provisions of an arbitrator's award 
amending the provisions of the Memorandum of 
Understanding (MOU) between the Union of American 
Physicians and Dentists and the City and County of San 
Francisco providing for a one-time 2.5% bonus on July 1, 
1999, in lieu of an incentive-based bonus, for Bargaining 
Unit 11AA. 



Description: 



On May 30, 1996, the Board of Supervisors approved two 
ordinances (Ordinance 259-97 and Ordinance 259-97) to 
implement MOUs between the City and Bargaining Units 
8CC and 11AA of the Union of American Physicians and 
Dentists for the four-year period covering July 1, 1997 
through June 30, 2001. 

Bargaining Unit 8CC represents the following seven 
classifications, for a total of 172.5 Full-Time Equivalent 
(FTE) employees: 



Classification 

2220 

2230 

2231 

2236 

2292 

2582 

2210 



Employee Title 
Physician 

Physician Specialist 
Senior Physician Specialist 
Medical Advisor 
Shelter Veterinarian 
Forensic Pathologist 
Dentist 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



SO 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Bargaining Unit 11AA represents the following one 
classification, representing 3.09 FTE employees: 

Classification Employee Title 

2232 Supervising Physician Specialists 

The existing MOUs established an incentive-based bonus 
program entitled the "Medical Quality Incentive 
Program," to permit each member of Bargaining Units 
8CC and 11AA to "be eligible to receive an incentive- 
based bonus" "ranging each year from to 3 percent of the 
employee's prior fiscal year's base salary earning" payable 
within 60 days of July 1. 1999 and July 1. 2000. 
According to Ms. Alice Villagomez, Deputy Director of the 
Department of Human Resources (DHR), the Union and 
the City have been unable to reach agreement on how to 
implement the Medical Quality Incentive Program 
pursuant to the existing MOUs. As a result, in accordance 
with Charter Section 8.409, et seq. and pursuant to the 
existing MOUs, a third-party arbitrator was selected by 
the City and the Union to resolve this issue. Mediation 
and arbitration hearings were held on March 30, 1998 
and an arbitration award was made on June 1, 1998. 

The proposed amendments to the existing ordinances 
would implement this arbitration award by amending the 
existing MOUs to provide for a one-time bonus of 2.5 
percent of the employee's base salary to be paid within 60 
days of July 1, 1999 for Bargaining Unit 8CC and 
Bargaining Unit 11AA. The proposed amendment would 
be effective for the one-year period from July 1, 1999 
through June 30, 2000. Thus, under the proposed 
amendment, no incentive-based bonus would apply as of 
July 1, 1999. However, implementation of the previously 
approved Medical Quality Incentive Program would still 
apply beginning as of July 1. 2000. 

Comments: 1. The attached memorandum from the Controller shows 

a) that the salary base of the employees covered under 
Bargaining Units 8CC and 11AA is approximately S19.8 
million, and b) that the incremental costs of the proposed 
amendment, which would apply a one-time 2.5 percent 
bonus for FY 1999-2000. would be S575.069. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



2. According to Ms. Peg Stevenson of the Controller's 
Office, when the existing MOUs were previously 
approved, the Controller provided the Board of 
Supervisors with a cost analysis which estimated an 
incremental cost of $332,000 for the Medical Quality 
Incentive Program for FY 1999-2000. Thus, for FY 1999- 
2000, the difference between the estimated incremental 
costs under the incentive-based program and the 
estimated incremental costs under the proposed 
amendment would be an additional $243,069. 

3. Ms. Stevenson further notes that although the proposed 
ordinance states that the affected employees would 
receive a one-time 2.5 percent bonus based on the 
employee's base salary, the proposed amendment would 
effectively increase the City's cost by approximately 2.9 
percent in FY 1999-2000, when wage-related fringe 
benefit increases such as Social Security, unemployment 
insurance and retirement benefits are also factored. 

4. The source of funds to pay for the proposed increased 
employee costs would be the City's General Fund. As 
provided in the arbitration award, the proposed 2.5 
percent bonus would be paid within 60 days after July 1, 
1999, and would therefore have to be included in the FY 
1999-2000 budget. 

5. Ms. Vicki Clayton of the City Attorney's Office reports 
that the arbitrator's decision is final and binding and the 
Board of Supervisors is required to approve the proposed 
ordinance, which would implement the provisions of the 
arbitrated settlement, unless there is a legal basis for a 
challenge. 



Recommendation:. Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




FEB-03-99 14:13 FROM.CCSF CONTROLLER ID: AttaCnment PAGE z 3 

Page 1 ot 2 
CITY AND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER 

Edward Harrington 
Controller 

John W. Madden 
Chief Assistant Controller 

Februarys, 1999 

Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlett Place 

San Francisco, C A 94 1 02 

RE: United .Association of Physicians and Dentists MOU .Amendment No. 1 
File No. 99-0041 and File No. 99-0042 

Dear Ms. Young, 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum of Understanding between the City and County of San Francisco and the United 
.Association of Physicians and Dentists. The amendment covers the period July 1 , 1 999 through June 30, 
2000, and affects approximately 181 employees with a salary base of approximately $19.8 million. 

The Medical Quality Incentive Program which this amendment affects was included in the United 
.Association of Physicians and Dentists' MOU as previously approved by the Board of Supervisors. The 
MOU previously specified that UAPD employees would be eligible for an incentive-based bonus of up to 
3% of base salary beginning July 1, 1999. This amendment provides instead that for FY 1999-2000 the 
Medical Quality Incentive Program will consist of a bonus to be paid to all employees of 2.5% of base 
salary, and that implementation of the incentive-based bonus system is now planned for July 1, 2000. 

Based on our analysis, the amendment will result in estimated incremental costs of approximately 
S575,000 in FY 1999-2000. Including wage-related fringe benefits, the amendment will result in a cost 
increase above the base salary amount of approximately 2.9% in FY' 1999-2000. The cost analysis 
provided by the Controller when the MOU was previously approved by the Board of Supervisors (letter of 
June 4, 1997) included an estimated amount of 5332,000 for the Medical Qualirv Incentive Program in 
1999-2000. 

If you have any addmonal questions or concerns please contact John Madden at 554-7500. 

Sincerelv, 

HEdward M. Harrington 
Controller 

cc: Vicki Rambo, ERD 

Harvey Rose, Budget Analyst 



415-554-7500 Chy H»n • 1 Dr. Cirtton R. Goodten PUcr • Raoei 316 • S*n Fr»»eisco CA 94102-16*4 FAX 415*554-?4* 



53 



FEB-03-99 14=13 FROM:CCSF CONTROLLER 



ID; Attachment 
Page Z ot 2 



PAGE 3/3 



Attachment A 

United Association of Physicians and Dentists 

Estimated Costs 1999-2000 

Control lee's Office 



Annual Incremental Coste/fSavmos^ 



FY 1999-2000 



Medical Quality Incentive Program 
2.5% bonus on 7/1/99 

Wage -Related Fringe Increases 



495.749 
79,320 



Total Estimated Incremental Costs 



575,069 



Incremental Cost % of Salary Base 



2.90% 



54 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



Item 9 - File 99-0043 

Department: 

Item: 



Description: 



Department of Human Resources 

Ordinance implementing Amendment No. 1 to the 
Memorandum of Understanding (MOU) between the 
Teamsters, Local 856 and the City and County of San 
Francisco to correct a clerical error by adding 
classification 3372, Animal Control Officer and deleting 
classification 3370, Animal Care Attendant in the listing 
of classifications having a one-year probationary period as 
set forth in Article II.B of the MOU effective July 1, 1998 
through June 30, 2001. 

In June of 1998, the Board of Supervisors approved a 
mediated settlement agreement (File No. 98-838) to 
extend the terms of an existing MOU with the Teamsters, 
Local 856 for the three-year period from July 1, 1998 
through June 30, 2001. 

According to Ms. Vicki Clayton of the City Attorney's 
Office, a mediated settlement agreement was required 
because the Teamsters, Local 856 and the City 
representatives could not reach agreement on the 
provisions of the MOU, including wage increases, salary 
step increases for provisional employees and various non- 
economic issues. 

The subject MOU covers the following 14 classifications, 
for a total of 120 employees. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



SS 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Classifications Employee Titles 



1434 Shelter Service Representative 

2444 Clinical Lab Technician 

2453 Supervising Pharmacist 

2462 Microbiologist 

2464 Senior Microbiologist 

2496 Radiologic Technologist Supervisor 

3320 Animal Keeper 

3370 Animal Care Attendant 

3372 Animal Control Officer 

6139 Senior Industrial Hygienist 

7444 Parking Meter Repairer 

8322 Senior Counselor, Juvenile Hall 

8323 Senior Counselor. Boys Ranch School 

8324 Supervising Counselor, Juvenile Court 

Currently, Article II. B of the MOU lists the following 7 
classifications of employees as having a one-year 
probationary period. 

Classifications Employee Titles 

2444 Clinical Lab Technician 

2453 Supervising Pharmacist 

2462 Microbiologist 

2463 Senior Microbiologist 

2496 Radiologic Technologist Supervisor 

8324 Supervising Counselor, Juvenile Court 

3370 Animal Care Attendant 

The proposed ordinance would implement Amendment 
No. 1 to the existing MOU between the Teamsters, Local 
S56 and the City. According to Ms. Clayton, this 
amendment would correct a clerical error by adding 
classification 3372, Animal Control Officer, which was 
inadvertently omitted and deleting classification 3370, 
Animal Care Attendant, which was inadvertently 
included, in the listing of classifications having a one-year 
probationary period as set forth in Article II. B of the 
MOU. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

56 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

The subject amendment would be retroactive to July 1, 
1998 through June 30, 2001, when the existing MOU 
terminates. 

Comment: According to Ms. Alice Villagomez of the Department of 

Human Resources, the proposed legislation would simply 
correct a clerical error by substituting classification 3370, 
Animal Care Attendant with classification 3372, Animal 
Control Officer in the listing of classifications having a 
one-year probationary period as set forth in Article II. B of 
the subject MOU. As such, the proposed ordinance would 
not have any fiscal impact to the City. 

Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 10 - File 99-0044 



Department: 
Item: 



Department of Human Resources 

Ordinance implementing tbe provisions of an amendment 
to the Memorandum of Understanding (MOU) between 
the San Francisco Deputy Sheriffs Association and the 
City and County of San Francisco to correct a clerical 
error of omission by adding Appendix D: Leave of 
Absences. 



Description: 



In June of 1998, the Board of Supervisors approved an 
arbitration award (File No. 98-927) to extend the terms of 
an existing MOU with the Deputy Sheriffs Association for 
the three-year period from July 1, 1998 through June 30, 
2001. 



According to Ms. Michele Modena of the City Attorney's 
Office, an arbitration award was required because the 
Deputy Sheriffs Association and the City representatives 
could not reach agreement on the provisions of the MOU, 
including wage increases, salary step increases for 
provision employees, minimum staffing levels at county 
jail facilities and other non-economic issues. 

The subject MOU covers the following 7 classifications, 
for a total of 748 employees. 



Classifications 


Emplovee Titles 


8302 


Deputy Sheriff I 


8304 


Deputy Sheriff 


8306 


Senior Deputy Sheriff 


8308 


Sheriffs Sergeant 


8310 


Sheriffs Lieutenant 


8312 


Sheriffs Captain 


8314 


Chief Deputy Sheriff 



Currently, Article II. R of the MOU states that portions of 
the Civil Service Commission Rules 1 applicable to 



' The Civil Service Commission Rules are the administrative rules for governing the City's Merit System, including 
employment, recruitment, application, examination, selection, certification and appointment, according to Ms. Kate 
Favetti, Executive Director of the Civil Service Commission. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



"5R 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 



employee leaves of absence, which mav not be negotiated 
or arbitrated , are attached to the MOU as Appendix C. 

Article II. R also states that portions of the Civil Service 
Commission Rules applicable to employee leaves of 
absence, which are negotiable and arbitrated in 
accordance with Citv Charter Sections A8.409 et sea. , 
may not be changed during the term of the MOU, except 
by mutual consent of the Deputy Sheriffs Association and 
City representatives. According to Ms. Modena, the 
above-noted portions of the Civil Service Commission 
Rules should have been attached to the MOU as Appendix 
D: Leave of Absences at the time of its approval by the 
Board of Supervisors. However, Ms. Modena states that 
such appendix was inadvertently omitted from the subject 
MOU. 



Comment: 



Recommendation: 



The proposed ordinance would amend the existing MOU 
between the San Francisco Deputy Sheriffs Association 
and the City and County of San Francisco to correct a 
clerical error by adding Appendix D: Leave of Absences to 
the MOU. As noted above, Appendix D: Leave of Absence 
contains the portions of the Civil Service Commission 
Rules applicable to employee leaves of absence, which are 
negotiable and arbitrated in accordance with Citv Charter 
Sections A8.409 et seq. . but which may not be changed 
during the term of the MOU, except by mutual consent of 
the Deputy Sheriffs Association and City representatives. 

According to Ms. Alice Villagomez of the Department of 
Human Resources, the proposed legislation would simply 
correct a clerical error by adding Appendix D: Leave of 
Absences to the existing MOU between the Deputy 
Sheriffs Association and the City. As such, the proposed 
ordinance would not have any fiscal impact to the City. 

Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BIDGET ANALYST 

59 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

Item 11 -File 98-1796 



Department: 



Item: 



City Attorney 
District Attorney 

Ordinance amending Chapter VII, Part 2 of the Municipal 
Code (Police Code) by adding Section 648.1 to Article 9 of 
the Municipal Code, to prohibit financial institutions from 
imposing a surcharge on non-account holders who use 
Automated Teller Machines (ATMs) owned by financial 
institutions that are located in San Francisco. 



Description: 



Currently, various financial institutions impose a 
surcharge on persons, who are not their customers, for 
using ATMs owned by those institutions (see Comment 
No. 1). 

The proposed legislation would prohibit financial 
institutions from imposing a surcharge of any kind on 
persons who are not their customers for accessing ATMs, 
located in the City and County of San Francisco, which 
are owned by those financial institutions, when the access 
devices are not issued by those financial institution. An 
access device means a card, code or other means of access 
to a customer's account, or any combination thereof, that 
may be used by the customer to initiate an electronic 
funds transfer. 



The result of the proposed legislation would be that 
financial institutions would be prohibited from imposing a 
surcharge on persons, who are not their customers, for 
using ATMs owned by those institutions. 

This proposed legislation provides that any person injured 
by a violation of this ordinance may enforce its provisions 
by means of a civil action. Any financial institution that 
violates this ordinance would be liable to the person 
injured for the actual damages as determined by a jury, or 
a court sitting without a jury, but in no case less than 
$250. Any financial institution found to be in violation of 
this ordinance would also be liable for attorney's fees and 
court costs, as determined by the court, and for punitive 
damages not to exceed $5,000 in cases where a financial 
institution has engaged in a pattern of willful violations. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February- 10, 1999 Finance and Labor Committee Meeting 

Furthermore, any action for injunction may be brought by 
any person injured by a violation of this ordinance, by the 
City Attorney, by the District Attorney, or by any person 
or entity which will fairly and adequately represent the 
interests of the protected class. 

Comments: 1. According to Mr. Mario Kashou of the City Attorney's 

Office, the surcharge (imposed by financial institutions on 
persons, who are not their customers, for using ATMs 
owned by those institutions) is usually $1.50 to $2.00. 
Mr. Kashou states that this surcharge is in addition to an 
"off-us" fee, usually $1.50 to $2.00, that nearly all 
financial institutions already charge their own customers 
for using another financial institution's ATM. According 
to Mr. Kashou, based on the above-noted ATM usage 
costs, the surcharge (imposed by financial institutions on 
non-customers who use ATMs owned by those 
institutions) and the "off-us" fee (charged by financial 
institutions to their own customers for using another 
financial institution's ATM) usually totals $3.00 to $4.00 
for each ATM withdrawal, regardless of the amount of 
each transaction. 

2. Mr. Kashou advises that the proposed ordinance would 
primarily be enforced by means of private lawsuits 
brought by citizens against financial institutions that 
impose the above-noted surcharges for use of their ATMs. 

3. Mr. Kashou advises that in the event that some 
financial institutions refuse to comply with the proposed 
ordinance, both the City Attorney and the District 
Attorney may also enforce this ordinance by securing 
court injunctions against such financial institutions to 
prohibit them from imposing the subject surcharges. Mr. 
Kashou and Ms. June Cravett of the District Attorney's 
Office state that they cannot estimate the legal costs to 
the City because such costs will depend on the number of 
financial institutions that do not comply with the 
proposed ordinance. However, according to Mr. Kashou 
and Ms. Cravett, barring any major non-compliance of the 
proposed ordinance by financial institutions, the City 
Attorney's Office and District Attorney's Office do not 
anticipate requesting additional budgeted funds to 
administer this proposed ordinance. Ms. Kashou believes 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 10, 1999 Finance and Labor Committee Meeting 

that the likelihood of any major non-compliance is 
minimal. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 




Harvey M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

62 




City and County of San Francisco city Han 

J J y ! ur. Carlton B. 



Meeting JVIinutes 
, Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, February 17, 1999 10:00 AM City Hall, Room 263 

Regular Meeting 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



DOCUMENTS DEPT. 

Meeting Convened 

The meeting convened at 10:00 a.m. ** '**«-d 

REGULAR AGENDA SAN FRANCISCO 

p UBLIC LIBRARY 

990135 [Lake Merced Transport Project - Transfer of Land] 

Resolution authorizing transfer of land (Assessor's Parcel No. 7282 described as Parcel No. 1 comprising of 
36,007 square feet and Parcel 2 comprising of 2,672 square feet),-to the United States of America for inclusion 
in the Golden Gate National Recreation Area. (Real Estate Department) 

1/25/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Tony DeLucchi, Real Estate Department; 
Supervisor Ammiano; Supervisor Yee; Supervisor Bierman. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 
990026 [Permit Regulation of Hazardous Wastes on Private Property] 

Ordinance repealing the definition of "Hazardous Waste" in Section 1000, and Sections 1002, 1003, 1005, 
1007, 1008, 1009, 1010, 1011, 1013, and 1015 of Article 20 of the San Francisco Public Works Code; and 
amending the San Francisco Health Code by reenacting the repealed provisions as new Article 22A; amending 
the remaining provisions of Article 20 of the San Francisco Public Works Code to reference new Article 22 A 
of the San Francisco Health Code; and providing the Department of Public Health with the authority to charge 
fees to defray the cost of implementing this article. (Department of Public Health) 

(Repeals Section 1000, and Sections 1002, 1003, 1005, 1007, 1008, 1009, 1010, 101 1, 1013, and 1015 of 
Article 20 of Public Works Code; amends the Health Code by reenacting the repealed provisions as new 
Article 22A; amends the remaining provisions of Article 20 of the Public Works Code to reference new Article 
22Aofthe Health Code. 

1/1/99, RECEIVED AND ASSIGNED to Health, Family, and Environment Committee. 

1/25/99, TRANSFERRED to Public Health and Environment Committee. New committee structure. 

1/28/99, AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. Heard in Committee: 
Speakers: Department Representative: Scott Natamo, Department of Public Health; Ted Lakev, Deputy City 
Attorney. In Support: Jeff Ludlow, Treadwell and Rollo. 

1/28/99, REFERRED to Finance and Labor Committee. 1/28/99 - Recommended as amended by Public 
Health and Environment Committee (Supervisor Brown absent). Referred to Finance and Labor Committee 
for fiscal consideration. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Scott Nakamura, Department of Public 

Health; Jeff Ludlow, supports; Supervisor Ammiano; Supervisor Yee. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

City and County of San Francisco I Printed at 4:24 PM on 2/1&V9 



Finance and Labor Committer Meeting Minutes February I ~, 1999 

990152 [Purchase of 555-7th Street Building 

Resolution authorizing the exercise of the purchase option in the lease between the City and ( ounty of San 
Francisco ("City"), as lessee, and Burt J Hamrol, as lessor, for the real property and building located at 555- 
7th Street (the "Property"); authorizing the officers of the ( its to enter into documents to implement said 
purchase; approving a Project Lease related to financing the acquisition of the property (including certain 
indemnities contained therein); approving a Trust Agreement between the City and a Trustee (including 
certain indemnities contained therein), authorizing the selection of a Trustee; approving the execution and 
delivery of Certificates of Participation to finance the acquisition of the property; authorizing the offer and sale 
of the certificates, approving the form of Official Notice of Sale, Notice ol Intention to Sell, and Official 
Statement; approving the form of Continuing Disclosure Certificate relating to the certificates, approving the 
validation of the execution and delivery of certificates; adopting findings pursuant to Planning Code Section 
101.1; and ratifying previous actions taken in connection therewith (Mayor) 

1/27/99, RECEIVED AND ASSIGNED to Finance and LabOf < ommittee 

Harvey Rose, Budget Analyst, Supervisor Yee, Ton) Debuccki, Real Estate Department, Supervisor Ammiano 

RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

990125 [Navy Lease of 574 Housing I nits on Treasure Island and Related Supirsisors Mayor. Ammiano, 
Facilities] Yee. Yaki. Bierman. Brown 

Resolution approving and authorizing the Treasure Island Development Authority to execute a lease with the 
United States Navy for the first 574 of a total of 766 housing units on Treasure and Verba Buena Islands to be 
subleased to the John Stewart Company. 

(Fiscal impact.) 

1/25/99, ASSIGNED UNDER 30 DAY Rl II to Transportation and I and l Fae Committee, expires on 
2/24/1999. 

2/9/99, REFERRED to Finance and Labor Committee This item was not considered by the Committee due to 
its fiscal impact. The item was referred to the Finance and Labor Committee for consideration. 

Heard m Committee Speakers Harvey Rose, Budget Analyst, Supervisor Ammiano, Supervisor 
Annemarie Conroy, Executive Director. Treasure Island Development Authority, Supervisor Bierman. 
Michael Cohen, Deputy City Attorney 
RECOMMENDED by the following sou-: 
Ayes: 3 - Yee, Bierman, Ammiano 

990126 | Sublease of up to 766 Housing Units on Treasure Island| Supervisors Mayor. Ammiano. 

Yee, Yaki, Bierman. Brown 
Resolution approving and authorizing the Treasure Island Development Authority to execute a sublease, 
development, marketing and property management agreement w ith the John Stewart Company for up to 766 
housing units on Treasure and Yerba Buena Islands. 

(Fiscal impact.) 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Transportation and Land Use Committee, expires on 

2/24/1999. 

2/9/99, REFERRED to Finance and Labor Committee. This item was not considered by the Committee due to 

its fiscal impact. The item was referred to the Finance and Labor Committee for consideration 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Supervisor Ammiano, Supervisor Yee; 
Annemarie Conroy, Executive Director, Treasure Island Development Authority; Supentsor Bierman; 
Michael Cohen, Deputy City Attorney 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 



City and County of San Francisco 2 Printed at 4:24 PM on 2/1SS99 



Finance and Labor Committee 



Meeting Minutes 



February 17, 1999 



Resolution approving and authorizing Treasure Island Development Authority to execute a sublease, 
development, marketing and property management agreement with the John Stewart Company for up to 766 
housing units on Treasure and Yerba Buena Islands. 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 

990127 [Indemnity and Repayment Agreements, Treasure Island Housing] Supervisors Mayor, Ammiano, 

Yee, Yaki, Bierman, Brown 

Resolution approving and authorizing a repayment agreement with the Treasure Island Development Authority 
and an indemnity agreement with the John Stewart Company related to Treasure Island Housing. 

(Fiscal impact.) 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Transportation and Land Use Committee, expires on 
2/24/1999. 

2/9/99, REFERRED to Finance and Labor Committee. This item was not considered by the Committee due to 
its fiscal impact. The item was referred to the Finance and Labor Committee for consideration. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Supervisor Yee; 
Annemarie Conroy, Executive Director, Treasure Island Development Authority; Supervisor Bierman; 
Michael Cohen, Deputy City Attorney. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

990128 [Navy Lease of 86 Housing Units on Treasure Island and Related Supervisors Mayor, Ammiano, 
Facilities) Yee, Yaki, Bierman, Brown 
Resolution approving and authorizing the Treasure Island Development Authority to execute with the United 
States Navy for the first 86 of a total of 222 housing units on Treasure and Yerba Buena Islands to be 
subleased to member organizations of the Treasure Island Homeless Development Initiative. 

(Fiscal impact.) 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Transportation and Land Use Committee, expires on 

2/24/1999. 

2/9/99, REFERRED to Finance and Labor Committee. This item was not considered by the Committee due to 

its Fiscal impact. The item was referred to the Finance and Labor Committee for consideration. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Supervisor Yee; 
Annemarie Conroy, Executive Director. Treasure Island Development Authority; Supervisor Bierman; 
Michael Cohen. Deputy City Attorney. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:24 PM on 2/1 W9 



Finance and Labor Commutes Meeting Minutes I ehruar\ 17,1999 

990129 [Sublease of 86 Housing Units on Treasure Island and Related Supervisors Mayer, Ammiano. 
Facilities to I MIDI Yee, Yaki. Bierman. Brown 
Resolution approving and authorizing the Treasure Island Development Authority to execute tour (4) 
subleases with member organizations of the Treasure Island Homeless Development Initiative for the first 86 
of a total of 222 housing units on Treasure and Yerba Buena Islands. 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Transportation and Land Use Committee, expires on 

2/24/1999. 

2/9/99, REFERRED to Finance and Labor Committee. This item was not considered by the Committee due to 
its fiscal impact. The item was referred to the Finance and Labor Committee for consideration. 

Heard in Committee Speakers Harvey Rose. Budget Analyst , Supervisor Ammiano. Supervisor Yee; 
Annemarie Conroy. Executive Director, Treasure Island Development Authority, Supervisor Bierman. 
Michael Cohen, Deputy ( 'itv Attorney 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

990130 |Revenue Sharing Agreement with TIHDI Regarding Housing Units] Supervisors Mayor, Ammiano. 

^ le. Yaki. Bierman. Brown 
Resolution approving ami authorizing the Treasure Island Develi , lent Authority to execute a revenue 
sharing agreement with the Treasure Island Homeless Development Initiative regarding the temporary use of 
1 12 housing units on Treasure and Yerba Buena Island, in connection with the John Stewart Company 
sublease. 

(Fiscal impact.) 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Transportation and I and I se ( ommittee. expires on 
2/24/1999. 

2/9/99, REFERRED to Finance and 1 abor Committee Thil item was not considered by the Committee due to 
its fiscal impact. The item was referred to the Finance and I abor Committee for consideration 

Heard in Committee Speakers. Harvey Rose. Budget Analyst, Supervisor Ammiano. Supervisor Yee; 
Annemarie Conroy. Executive Director Treasure Island Development Authority. Supervisor Bierman. 
Michael Cohen. Deputy City Attorney 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 
990157 |Cal\VORKs - Child Care Contract Modification! 

Resolution authorizing an increase in enrollment and service level for CalWORKs Child Care by modifying 
the existing contract with the Children's Council of San Francisco in the amount ot S40.8 million to provide 
for the increase in enrollment, program costs and a number of capacity building initiatives, i Department of 
Human Services) 

1/27/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

1/28/99, CLERICAL CORRECTION. Clerical correction to title only: delete "Urging the Board of Supervisors 
to authorize". 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst. Will Lightliourne. Executive Director. Human 
Services Department; Supervisor Ammiano; Supervisor Yee In Support - Maria Lu: Torre, Parent Voices; 
Elia Fernandez. Susan Lavara. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 4 Printed at 4:24 PM on 2/IS/99 



Finance and Labor Committee Meeting Minutes February 17, 1999 

990183 [California Community Dispute Services Contract/Program] Supervisor Yee 

Hearing to consider the California Community Dispute Services (CCDS) contract and program. 

2/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Thorn Bateman, Executive 
Director, California Community Dispute Services (CCDS); Supervisor Ammiano; Jeff Brown, Public 
Defender; Gordon Park -Li, Executive Officer, Superior Court; Captain Alex Pagan, Fiscal Division. Police 
Department; Lieutenant Ray Kilroy, Commanding Officer, Vice Crimes; Deputy Chief Richard Holder; 
Supervisor Bierman; Riva Bautista, Assistant District Attorney; Rebecca; Carol Leigh, Coalition on 
Prostitution; Teri Goodson, COYOTE; Daisy, Exotic Dancer's Alliance; Madeline Lowe; Terry R. Koch, 
National Lawyers Guild; Johanna Breyer, Exotic Dancer's Alliance; Dawn Passar, Exotic Dancer's Alliance; 
Ricardo, investigative writer; Renata Huang, freelance reporter. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 
ADJOURNMENT 

The meeting adjourned at 1:00 p.m. 



City and County of San Francisco 5 Primed at 4:24 PM on 2/IS/V9 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



.X5± 



7/l1 




OFSANFRANC TOc(JMENTs DEpT 

^BOARD OF SUPERVISORS FEB 1 9 T329 

BUDGET ANALYST S AN FRANCISCO 

PUBLIC LIBRARV 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 onMrir 

FAX (415) 252-0461 

February 12, 1999 
TO: .Finance and Labor Committee 

FROM: .Budget Analyst 

SUBJECT: February 17, 1999 Finance and Labor Committee Meeting 
Item 1 - File 99-0135 

Department: Department of Real Estate (DRE) 

Recreation and Park Department (RPD) 

Item: Resolution authorizing the transfer of City-owned land, 

from the Recreation and Park Department to the National 
Park Service (NPS) of United States Department of the 
Interior, through the execution of a quitclaim deed, at no 
cost to the NPS, for the NPS to operate and maintain a 
public restroom facility on such land. 

Description: The proposed resolution would authorize, at no cost to the 

National Park Service (NPS), the permanent transfer of 
City-owned property from the Recreation and Park 
Department (RPD) to the NPS, through the execution of a 
quitclaim deed, consisting of two parcels of vacant land, 
one located south of Sloat Boulevard to Skyline Boulevard 
(36,007 square feet), and one located west of the curb line 
of the Great Highway to the Golden Gate National 
Recreation Area (GGNRA) 1 (2,672 square feet), for a total 
of 38,679 square feet. 

According to Mr. James Chia of the Department of Public 
Works (DPW), in order to construct the Lake Merced 



' The GGNRA is 76,500 acres of urban park land, maintained by the NPS, along the coastlines of the Marin, San 
Mateo and San Francisco Counties. 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Transport Project 2 , the City required the temporary use of 
certain NPS land located within the GGNRA for staging 
purposes during the construction phase of the Lake 
Merced Transport Project. 

Mr. Chia states that as part of mitigation measures for 
the construction of the Lake Merced Transport Project, 
the DPW agreed to build a restroom facility for use by the 
public on NPS land adjacent to Sloat Boulevard and the 
North Sloat Parking Lot along the Great Highway. 
According to Mr. Chia, a portion of the restroom facility 
was constructed on the parcel of City-owned land, 
consisting of 36,007 square feet, located south of Sloat 
Boulevard to Skyline Boulevard. Mr. Chia states that 
using Clean Water Program funds, the DPW completed 
the construction of the restroom facility in August of 1993 
at an estimated cost of $350,000. Mr. Chia states that the 
NPS has operated and maintained the restroom facility at 
no cost to the City. 

Comments: 1. In the attached memorandum, provided by Mr. 

Anthony DeLucchi, Director of Property, referring to the 
proposed transfer of City-owned property to the NPS at no 
cost to the NPS, Mr. DeLucchi explains that "The 
Recreation and Park Department determined it is in the 
best interest of the City to transfer the subject land 
between the Great Highway and the GGNRA property 
line to the GGNRA 3 ." Mr. DeLucchi concurs with the 
RPD's determination to transfer the subject City-owned 
property to NPS because he states that the subject City- 
owned strip of property, which Mr. DeLucchi refers to as 
"a sliver of land," is of use only to NPS. In the attached 
memorandum, Mr. DeLucchi also states that "As 
consideration from GGNRA, they have agreed to full 
responsibility for the maintenance and repair of the storm 
drains and storm sewers on their property." 

Also in this memorandum, referring to the subject City- 
owned property. Mr. DeLucchi states that "The likelihood 
of the zoning designation being anything other than 



: The Lake Merced Transport Project was a DPW effort to service and repair storm drains along the Great Highway 
near Lake Merced, according to Mr. Chia. 

3 In this memorandum. Mr. DeLucchi refers to the National Park Service as the Golden Gate National Recreation 
Area (GGNRA). 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



public open space is virtually non-existent. As a result, it 
has no value to a private owner and would be burdened 
with the added liability and obligation to allow the public 
to use and to cross the property to adjoining open space." 

2. The Department of City planning has determined that 
the proposed transfer of City-owned property to National 
Park Service is in conformity with the General Plan. 

3. According to Mr. Robert Bryan of the City Attorney's 
Office, upon transfer to the NPS of the subject City-owned 
property, including the restroom facility thereon, any City 
responsibilities or liability in connection with NPS' 
operation of the restroom facility would cease. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



i' 1333 1W-U4 



CCSF REPL EBTfiTE ltr>T 



City and County of San Francisco 




February 11, 1999 



r'age 1 or 2 
Real Estate Department 

Offics cf the 
Directcr cf Frcperry 



Lake Merced Transport Project 
Transfer of land to the GGNRA 
(Portion of APN 7282) 



Karvcy Rose 

Budget Analyst 

1390 Market Street, Suite 1025 

Dear Mr. Rose: 

In response to your inquiry concerning the proposal to transfer the above-captioned 
property to the Golden Gate National Recreation Area (GGNRA) at no cost and a value 
representation if the property could be sold privately, we submit the following 
information for your consideration: 

A Special Use Permit was granted to the City as an accommodation to facilitate the 
construction of the Lake Merced Transport Project which allowed the City to use 
GGNRA property at no rental cost for storage and construction staging purposes. 

As consideration and a mitigation measure for the project, the Permit required City tc 
construct a restroom facility partially on GGNRA and the subject property. GGNRA 
assumed responsibility for mainterancc and cost of utilities to the restroom Formerly, 
there were no public restrooms in the general vicinity although the demand was 
recognized. 

After the initial grant was made to GGNRA •* was determined that a sliver of land 
remained under Rec Park jurisdiction located between the Great Highway and GGNRA 
lands. The Recreation and Park Department determined it is in the best interest cf the 
City to transfer the subject land between the Great Highway and the GGNRA. property 
line to the GGNRA (The Real Estate Department concurs in this opinion.) As 
consi deration from GGNRA, they have agreed to full responsibility for the mainter.ar.ee 
and repair of the storm drains and storm sewers situated on their property 

The Department of City Planning (DCP) found the Project and the transfer of the two 
parcels to be in conformity with the General Plan "as the property will continue to be 
maintained and managed as public open space." Furthermore, DCP cited "use of the 
land would not be affected by the transfer. The land, zoned "P", Public Use, would 
continue to be available as open space." Therefore, it is cur opinion the economic value 
of the property is the benefit it provides to the genera! public for recreation and ccen 
space. 



FAX 552-0216 



25 Van N«a« Avw»jo. Sum *O0 



S*n F-»ne=sc=, S*".C2 



TOTfiL =.52 



f FE3-11-19S9 IS: 02 CCSF REAL ESTATE DEPT Attachment 

Paee 2 or 2 



Harvey Rose 
February 11, 1999 
Pasie 2. 



The likelihood of the zoning designation being anything other than public open space is 
virrually non-existent. As a result, it has no value to a private owner and would be 
burdened with the added liability and obligation to allow the public to use and to cross 
the property to adjoining open space. 

If you require any further information regarding this matter, please feel free to contact me 
at #554-9875 or Claudine Venegas of my staff at #554-9872. 

Sincerely, 




Anthcgj^^JjeLucchi 

Director of-Broperty 




Ovtl : \ggzrmjyuti gctuiaj y tl 



Gabe Cabrera, Budget Analyst 

James Chia, DPW 

Manfred Wong, PUC 

Robert Bryan, Deputy City Attorney 



TOTAL P. 23 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-0026 

Note: This item was transferred from the January 28, 1999 Public Health and 
Environment Committee to the Finance and Labor Committee due to the 
consideration of fees in the proposed legislation. This report is based on 
an Amendment to the Whole, submitted to the January 28, 1999 Public 
Health and Environment Committee. 



Department: 
Item: 



Description: 



Department of Public Health 

Ordinance (1) repealing the definition of "hazardous 
waste" in Section 1000, as well as all of Sections 1002, 
1003, 1005, 1007, 1008, 1009, 1010, 1011, 1013 and 1115 
of Article 20 of the San Francisco Public Works Code 
(Public Works Code); (2) amending the San Francisco 
Public Health Code (Health Code) by reenacting the 
above-noted repealed provisions of the Public Works Code 
as Article 22A of the Health Code; (3) amending the 
remaining provisions of Article 20 of the Public Works 
Code to reference new Article 22A of the Health Code; and 
(4) increasing the fees charged by the Department of 
Public Health to defray the related costs of implementing 
the substantive health protection requirements. 

Currently, Article 20 of the Public Works Code contains 
the substantive health protection requirements 
concerning hazardous waste on private property in San 
Francisco. 

Under these substantive health protection requirements, 
an applicant for a building permit must conduct a soil 
sampling at the proposed construction site and mitigate 
any hazardous waste found in such soil pursuant to a site 
mitigation plan. 

Mr. William Chan of the City Attorney's Office states that 
although the substantive health protection requirements 
are codified in the Public Works Code, the Environmental 
Health Section of the DPH is currently responsible for 
implementing them. Specifically, the DPH staff reviews 
site history reports, soil analysis reports and site 
mitigation plans, and based on such review, determines 
whether applicants for building permits meet the 
requirements for analyzing the soil for the presence of 
hazardous waste. The Department of Building Inspection 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

subsequently issues the requested building permits upon 
instruction by the DPH, according to Mr. Chan. 

Therefore, this proposed ordinance would relocate the 
substantive health protection requirements from Article 
20 of the Public Works Code to a new Article 22A in the 
Health Code. 

Specifically, the proposed ordinance would authorize the 
following actions: 

(1) Repeal the definition of "hazardous waste" in Section 
1000, as well as all of Sections 1002, 1003, 1005, 1007, 
1008, 1009, 1010, 1011, 1013 and 1115 of Article 20 of the 
Public Works Code. 

(2) Reenact the subject, repealed provisions of the Public 
Works Code as Article 22A of the Health Code. 

(3) Amend the remaining provisions of Article 20 of the 
Public Works Code to reference new Article 22A of the 
Health Code. 

(4) Increase the fees charged by the Department of Public 
Health to defray the related costs of administering the 
substantive health protection requirements. 

According to Mr. Chan, the purpose of the proposed 
legislation is to promote greater efficiency in the 
administration of the substantive health protection 
requirements, by relocating such substantive health 
protection requirements from the Public Works Code to 
the Health Code. 

Comments: 1. The attached memo, provided by Ms. Pamela Hollis of 

the DPH, compares the current fees charged by the DPH 
for defraying its related costs of administering the 
substantive health protection requirements with the 
proposed, increased fees for such costs. 

2. According to Ms. Hollis, the DPH collected $42,300 in 
current fees in FY 1997-98, as shown in the attached 
memo. Ms. Hollis advises that the proposed, increased 
fees would generate additional revenues to the City of 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



$12,300 annually. As a result, the DPH would realize 
total estimated annual fee revenues of $54,600. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



JAN-25-1999 16=44 BEHT1 HftZ UPSTE P.B1 

Fee Comparison for 

Relocation of Substantive Health Protection Requirements in the 

Maher Ordinance 



Present Fees: 

S 225.- Initial fee (covering 3 hours of work) 
5 75.- Hourly rate cnarged thereafter 

Monies generated for fiscal year 1997-1998 

S 42,300.- 28 projects with avenge time spent of 15 hours each 



Proposed Fees: 

S 390.- Initial fee (covering 3 hours of work) 
S 130.- Hourly rate charged thereafter 

Projected monies to be generated for next fiscal year 

S 54.600. 32 - 28 projects with 15 hours each. 

Projected incease in revenues generated 
$ 12.300.^ 



Post-tt"" Drand fax transmittal memo 7571 i * <* » 



&iK^.\ I a 



££__ 



( ^>-A<^A -^cWr 



Vi 



•5eS-3G~71 



^3^-jD^> r' ^a-,s?^ 



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Memo to Finance and Labor Committee 

February 17. 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-0152 



Department: 



Item: 



Mayor's Office of Public Finance 
Department of Real Estate (DRE) 

Resolution (1) authorizing the Director of Property to 
exercise an option under an existing lease between the 
City, as lessee, and Burt J. Hamrol. as lessor, to acquire 
the land and building located at 555 7 th Street, (2) 
authorizing the officers of the City to enter into 
documents to implement said purchase, (3) approving a 
project lease related to financing the acquisition of the 
property, including certain indemnities contained therein, 

(4) approving a trust agreement between the City and a 
trustee, including certain indemnities contained therein, 

(5) authorizing the selection of a trustee, (6) approving the 
execution and delivery of Certificates of Participation 
(COPs) to finance the acquisition of the property and 
building, (7) approving the form of official notice of sale, 
notice of intention to sell and official statement, (8) 
approving the form of continuing disclosure certificate 
relating to the COPs, (9) approving the validation of the 
execution and delivery of the COPs, (10) adopting findings 
under the California Environmental Quality Act and 
findings pursuant to the City's Planning Code Section 
101.1, and (11) ratifying previous actions taken in 
connection therewith. 



Location of 
Real Property 
and Building: 



555 7 th Street 



Planned Uses 
of Real Property 
and Building: 



Present Owner: 



Administrative office space currently used by both the 
Public Defender and Sheriffs Department. The City 
currently leases the subject building and has been the 
sole occupant of the building since it was constructed in 
1987, according to Mr. Larry Ritter of the Real Estate 
Department (DRE). 

Burt J. Hamrol 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



10 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Lessor/Trustee 

for COPs Financing: 



Size: 



Financial institution anticipated to be determined by 
competitive bid (see Comment No. 1). As explained below, 
the City would assign its rights to purchase the land, 
together with the building thereon, to a trustee, and lease 
the land and building back for an estimated 25 years, at 
which time the trustee would transfer fee title to the 
property back to the City. 

Building: 32,000 square feet. Parking: 16,000 square feet, 
and Rear Yard: 2,700 square feet 



Purchase Price: 

Total Estimated COP 

Issuance for 

Purchase of Property, 

Financing 

and Related Costs: 



$7,358,125 



Not to exceed $8,700,000. Ms. Sarah Hollenbeck of the 
Mayor's Office of Public Finance currently estimates total 
costs at $8,480,000 and a proposed COP issuance in the 
same amount. 



Term of Lease 

for COP Financing: 



Not to exceed 35 years. Ms. Hollenbeck currently 
estimates that the term of the lease would be 25 vears. 



Source of Funds: 



Description: 



Sale of Certificates of Participation (COPs) to be financed 
from budgeted General Fund monies for office rental for 
the Public Defender and Sheriffs Department. 

In December of 1991. the City entered into a 10-year lease 
of 50,700 square feet of real property located at 555 7 th 
Street, including 32,000 square feet in the building 
located thereon, which is owned by Burt J. Hamrol. The 
subject building is currently used for administrative office 
space by both the Public Defender (24,332 square feet) 
and Sheriffs Department (7.668 square feet). 

The above-noted lease includes an option for the City to 
purchase the land and building at 555 7 th Street. The 
proposed resolution would authorize financing of the 
$7,358,125 purchase price for the land and building 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



located at 555 7 th Street through the issuance and sale of 
COPs. 

COPs are a financing technique that provides long term 
financing through a lease or installment sales agreement. 
COPs represent proportionate interests in the lease of the 
property, which are sold to investors. The investors 
would receive a return on their investment through the 
lease payments made by the City for the land and 
building. The City would assign its rights to purchase the 
land, together with the building thereon, to a financial 
institution, as trustee, and lease the land and building 
back from the financial institution at an annual amount 
sufficient to service the debt on the COPs purchased by 
the investors. At the end of the term (currently 
anticipated to be 25 years), the trustee would transfer fee 
title to the land and building back to the City. 

The overall continued uses of the property at 555 7 th 
Street are as follows: 

Continued Uses Square Feet 

Public Defender Offices 24,332 

Sheriffs Department Offices 7,668 

Parking 16,000 

Rear Yard 2.700 

Total 50,700 

The total estimated costs related to the purchase of the 
land and building at 555 7 th Street are summarized as 

follows: 



Appraised Value of Land and Building 


$7,358,125 


(see Comment No. 


2) 




Reserve Fund 




654,260 


Underwriters Discount 




63,600 


Cost of COPs Issuance 




400,000 


Rounding 




4.015 


Total 




$8,480,000 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



The expenditure of all funds would be subject to 
appropriation approval by the Board of Supervisors. 

As noted above, COPs are proportionate interests in the 
lease of the land and building, which are sold to investors. 
The City anticipates assigning its rights to purchase the 
land and building to a financial institution serving as a 
trustee, and leasing the land and building back from the 
trustee at an annual amount sufficient to service the debt 
on the COPs bought by the investors. Ms. Hollenbeck 
estimates that the annual lease payment to the trustee 
will total approximately $651,598, based on an effective 
interest rate of 5.88 percent and a term of 25 years. 
Currently, the City reimburses the owner of the building 
for utilities and janitorial services, which totaled $79,513 
in FY 1998-99. However, the City does not pay for 
maintenance costs. Under the proposed acquisition of the 
subject property, the City would pay for the maintenance 
costs as well as for utilities and janitorial services. Such 
costs are estimated to increase by three percent per year 
from $137,100 in FY' 1999-2000 to $278,696 in FY' 2023- 
24, when the trustee will transfer fee title back to the 
City. Total projected annual expenditures, including the 
annual debt service for the COPs and the increased 
operations and maintenance costs, is estimated at 
$788,698 in FY' 1999-2000, increasing to $930,294 in FY' 
2023-24. 

Ms. Hollenbeck states that the source of funds for 
covering the annual project debt service for the COPs and 
to pay for utilities and janitorial services as well as the 
above-noted additional maintenance costs would be the 
currently budgeted funds for rental costs and utilities and 
janitorial services which the City is already paying to 
lease the building located at 555 7 th Street. As shown in 
the Attachment to this report, provided by Ms. 
Hollenbeck, if the City were to continue to lease the 
building at 555 7 th Street, total estimated expenditures of 
$917,234 to the City for FY' 1999-2000 would exceed the 
total estimated expenditures of $788,698 to the City for 
the same fiscal year if the City were to purchase and 
maintain the land and building. The Attachment shows 
that the proposed acquisition would result in estimated 
savings of $128,537 to the City in FY 1999-2000. In FY* 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



13 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

2000-01, the Mayor's Office of Public Finance estimates 
savings of $160,294. The projected annual savings to the 
City would continue to increase through the expected 25- 
year term of the COP issuance. 

The Attachment also shows that the City would save an 
estimated $9,774,257 in nominal dollars, or a net present 
value of $4,327,426 discounted at 5.88 percent, over the 
next 25 years by purchasing the land and building at 555 
7 th Street in FY 1998-99, instead of continuing to lease 
the building. 

Comments: 1. As noted above, the Mayor's Office of Public Finance 

plans to assign the City's rights to purchase the property 
at 555 7 th Street to a financial institution (trustee) and 
lease the property back from the trustee at an annual 
amount sufficient to service the debt on the COPs. Ms. 
Hollenbeck advises that the Mayor's Office of Public 
Finance plans to send Invitations for Proposals to various 
financial institutions and expects to select the trustee in 
May of 1999. 

2. Mr. Ritter advises that the City's lease with Burt J. 
Hamrol specified that, in connection with the City's option 
to acquire the property at 555 7 th Street, the purchase 
price of the property would be determined by obtaining 
three independent appraisals, then discarding the 
appraisal that differed most widely from the other two 
appraisals, averaging the remaining two appraisals and 
reducing the average of the two appraisals by the cost of 
selling the property on the open market, instead of selling 
it to the City. The appraised value of the property, as 
determined in this manner, is $7,358,125. 

3. Ms. Hollenbeck states that the option to purchase the 
property at 555 7 th Street under the existing lease 
between the City and Burt J. Hamrol expires on August 
31, 1999. 

4. As shown in the Attachment, under the terms of the 
existing lease between the City and Burt J. Hamrol, the 
annual rent paid by the City to Burt J. Hamrol for the 
property at 555 7 th Street would increase by 4 percent per 
year until the year 2001. After this date, if the City were 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



to continue to lease the property, rather than to purchase 
the property, Mr. Ritter estimates that the annual rent 
would increase by ten percent even - five-years, or 
approximately 2 percent every year, until the year 2024. 
This 2 percent increase in annual rent is at the current 
Consumer Price Index of approximately 2 percent and as 
such, represents a conservative estimate of future rental 
payment increases by the City to Burt J. Hamrol, 
according to Mr. Ritter. 

5. Ms. Michelle Sexton of the City Attorney's Office states 
that the Project Lease and the Trust Agreement contain 
standard indemnification provisions in accordance with 
the COP financing. 

6. The Capital Improvement Advisory Committee 
approved the proposed purchase of the land and building 
located at 555 7 th Street at its meeting of January 22, 
1999. 

7. The Department of City Planning has found that the 
proposed acquisition of land and building located at 555 
7 th Street to be in conformity with General Plan and 
exempt from Environmental Review because the uses of 
such property would remain the same if the proposed 
resolution is approved. 

8. In summary, the proposed resolution would authorize 
the City to purchase the land and building at 555 7 th 
Street, instead of continuing to lease the property. The 
building is currently used for administrative office space 
by the Public Defender and Sheriffs Department, and 
such use would continue under the proposed purchase. 
Financing and related costs to acquire the property could 
not exceed $8,700,000, and is currently estimated by the 
Mayor's Office of Public Finance at $8,480,000. The 
resolution would authorize the issuance of up to 
$8,700,000 in Certificates of Participation (COPs) to be 
repaid by the City through a lease held by a trustee, who 
would transfer fee title of the property to the City at the 
end of the lease term. The source of funds for covering 
annual project debt service for the COPs and to pay for 
utilities and janitorial services as well as the additional 
maintenance costs would be the currently budgeted funds 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



for rental costs and utilities and janitorial services to 
lease the building located at 555 7 th Street. 

As previously noted, the Mayor's Office of Public Finance 
estimates that purchase of the property at 555 7 th Street 
at this time will result in a net present value savings to 
the City of approximately $4,327,426 over the next 25 
years, compared with the cost of continuing to lease the 
property. 



Recommendation: Approve the proposed resolution. 









BOARD OF SUPERVISORS 

BUDGET ANALYST 

16 



FEB. -01' 99 



16:04 CCSF PUBLIC FINANCE 



TEL: 4 15 554 4864 



P. 013 

Attachment 






TOTAL 
NPV Savings 



Assu 



mpoons 



Purchase Price 

Par Amount of Bonds 

TIC 

Discount Rats 



Tr--=z -.- ■-"-_$■• ■.;•■ B» . 


>l£cquisifihn j|pi3 


^gaa ^Basei^jej-^rc 


Annual 


Ann ml 


Rental 


OAM [1] 


803208 


79 J 13 


835236 


81.898 


868.750 


84255 


955,627 


86,886 


955.627 


89.493 


955,627 


92.177 


955.627 


94343 


955.627 


97.791 


1.051.190 


100,725 


1.051.190 


103.746 


1.051.190 


106.859 


1,051,190 


110,065 


1.051.190 


113267 


1.156,309 


116.768 


1. 156.309 


120271 


U 56209 


123.879 


1. 156.309 


127.595 


1,156,309 


131.423 


1271.940 


I35J66 


1271.940 


139.427 


1271.940 


143,609 


1271.940 


147^18 


1271.940 


152255 


1299.134 


156326 


U99.134 


161.634 


1299.134 


166.483 
5 3.065.468 


S 23,880.025 



S 


7258,125 


5 


8.48O.C0O 




5.880% 




5.88C% 



- ii- rr-r-rS-Hi=r^r^ 


zr~r ~^rz _— z. r _I 


'2j =253&ar 'Bo p31ScSxxnoi^ 


Annual 


Annual 


Debt Service 


O&M 


651298 


137.100 


651.598 


141213 


651.598 


145.449 


651298 


149,813 


651298 


154.307 


651298 


158,936 


651298 


163.705 


651298 


168.616 


651298 


173,674 


651298 


178,884 


651298 


184251 


651.598 


189,778 


651298 


195.472 


651298 


201236 


65129* 


207276 


651298 


213297 


651298 


220.005 


651298 


226.605 


651298 


233,404 


651298 


240.406 


651298 


247.618 


651298 


255,046 


651298 


262.698 


6512S8 


270279 


651298 
S 16289.950 


278.696 


S 4.998265 



Annual 
Savings 



N/A 
128237 
160294 
245,466 
243.709 
241,899 
240.035 
238.116 
331.701 
329.664 
327266 
325.406 
323,180 
426.007 
423,645 
4212U 
418,709 
■416.129 
529.102 
526265 
523245 
520,642 
517.651 
641,764 
638291 
635222 



9.774257 



4227,426 



[ 1 1 Annual O&M currently include only utilities and janitorial services and supplies (fa which the City reiahurscs the landlord). 



17 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Items 4. 5. 6. 7. 8 and 9 - Files 99-0125. 99-0126. 99-0127. 99-0128. 99-0129 and 
99-0130 

Note: 

Department: 
Items: 



These items were transferred from the Transportation 
and Land Use Committee at the February 8, 1999 
Meeting to the Finance and Labor Committee because 
these items were determined to have fiscal impact. 

Mayor's Office, Treasure Island Development Authority 

Item 4 - File 99-0125 : Resolution approving and 
authorizing the Treasure Island Development Authority 
to execute a lease with the United States Navy for the 
first 574 of a total of 766 housing units on Treasure 
Island and Yerba Buena Island to be subleased to the 
John Stewart Company. 

Item 5 - File 99-0126 : Resolution approving and 
authorizing the Treasure Island Development Authority 
to execute a sublease, development, marketing and 
property management agreement with the John 
Stewart Company for up to 766 housing units on 
Treasure and Yerba Buena Islands. 



Item 6 - File 99-0127 : Resolution approving and 
authorizing the City to enter into i) an indemnity 
agreement with the John Stewart Company, and ii) a 
repayment agreement with the Treasure Island 
Development Authority. 

Item 7 - File 99-0128 : Resolution approving and 
authorizing the Treasure Island Development Authority 
to execute a lease with the United States Navy for the 
first 86 of a total of 222 housing units on Treasure and 
Yerba Buena Islands to be subleased to member 
organizations of the Treasure Island Homeless 
Development Initiative. 

Item 8 - File 99-0129 : Resolution approving and 
authorizing the Treasure Island Development Authority 
to execute four subleases with member 
organizations of the Treasure Island Homeless 
Development Initiative for the first 86 of a total of 222 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

housing units on Treasure Island and Verba Buena 
Island. 

Item 9 - File 99-0130 : Resolution approving and 
authorizing the Treasure Island Development Authority 
to execute a revenue sharing agreement with the 
Treasure Island Homeless Development Initiative 
(TIHDI) permitting the Authority to temporarily use of 
112 TIHDI housing units on Treasure Island in 
connection with the John Stewart Company sublease. 

Purpose of Proposed 

Resolutions: To further the conversion of Treasure Island and Verba 

Buena Island to civilian reuse from its former function as 

a United States Naval Station. 



Subject Properties: 



A total of 1,000 housing units, owned by the United 
States Navy and formerly part of Naval Station Treasure 
Island, which closed in October, 1997. 

Of the 1,000 housing units, 766 will be available for the 
Authority to sublease to the John Stewart Company for 
market-rate residential leasing (574 housing units 
currently available from the Navy and subject of File 99- 
0125. and 192 housing units expected to be available after 
the Navy completes certain environmental remediation). 

Of the 1,000 housing units, 222 housing units will be 
available for the Authority to sublease to the Treasure 
Island Homeless Development Initiative (86 currently 
available from the Navy and subject of File 99-0128, and 
136 housing units expected to become available after the 
Navy completes certain environmental remediation and 
TIHDI programs using the housing units are in place). 

Of the 1,000 housing units, 12 housing units are reserved 
for employees of the Delancey Street operations. The 
sublease to Delancey Street will be separately presented 
to the Authority and is not a subject of the proposed 
resolutions. 



Overview 



On May 2, 1997, the Board of Supervisors authorized the 
creation of the Treasure Island Development Authority 
as a nonprofit public benefit corporation to act as a single 
entity focused on the planning, redevelopment. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



reconstruction, rehabilitation, reuse and conversion of 
former Naval Station Treasure Island. (Resolution No. 
244-97-3). On October 12, 1997, the California 
Legislature approved the Treasure Island Conversion Act 
of 1997, which designated the Authority as a trustee of 
the State Tidelands Trust and as a redevelopment agency 
with jurisdiction over Treasure Island and Yerba Buena 
Island. 

Pursuant to the Treasure Island Conversion Act, on 
February 6, 1998, the Board of Supervisors authorized the 
Authority to act as the redevelopment agency, with all the 
rights, privileges, immunities, authorities, and duties 
granted to redevelopment agencies under State law, for 
the purpose of acquiring, using, operating, maintaining, 
converting and redeveloping former Naval Station 
Treasure Island (Resolution No. 43-98). Resolution No. 
43-98 further authorized the Authority to act as the 
trustee under the Tidelands Trust. 

As a redevelopment agency, the Authority must present 
its budget to the Board of Supervisors for approval. The 
Mayor selects the directors of the Authority with approval 
from the Board of Supervisors. Mr. Michael Cohen of the 
City Attorney's Office states that because the proposed 
resolutions concern contracts to be entered into by the 
Authority that exceed $1 million, and, in some cases 
exceed ten years, Board of Supervisors' approval is 
required under Resolution 314-98. 



Items 4. 5, 6 - Files 99-0125. 99-0126. 99-0127 : 



Resolutions approving and authorizing the Treasure 
Island Development Authority to execute a lease with the 
United States Navy for the first 574 of a total of 766 
housing units on Treasure Island and Yerba Buena Island 
to be subleased to the John Stewart Company (Master 
Housing Lease) (File 99-0125); approving and 
authorizing the Treasure Island Development Authority 
to execute a sublease, development, marketing and 
property management agreement with the John Stewart 
Company for up to 766 housing units on Treasure and 
Yerba Buena Islands (Agreement) (File 99-0126); 
approving and authorizing the City to enter into i) an 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Subject Properties: 

Lessor: 

Lessee: 

Term of the Master 
Housing Lease: 



indemnity agreement with the John Stewart Company 
(Indemnity Agreement) and ii) a repayment agreement 
with the Treasure Island Development Authority 
(Repayment Agreement) (File 99-0127). 

574 housing units initially of the 766 housing units 
available from the Navy for the Authority to sublease to 
the John Stewart Company. 

United States Navy 

Treasure Island Development Authority 



The term of the Master Housing Lease between the 
Authority and the United States Navy is 15 years. The 
lease would commence after all necessary approvals are 
obtained. 



Rent Payable to Navy None. However, the Navy charges the Authority a 
Owed by the Authority Common Area Maintenance Charge (Navy CAM Charge) 
Under Master of $0,050 per square foot per month of interior space 

Housing Lease: and $0,003 per square foot per month of exterior space. 

These charges would be paid directly by the sublessees: 
the John Stewart Company and the member 
organizations of TIHDI. 



Sublessee Under 
the Agreement 
Between Authority 
and the John 
Stewart Company: 



Under the sublease, development, marketing and 
property management agreement between the Authority 
and the John Stewart Company (Agreement), the John 
Stewart Company would be the sublessee. Subsequently, 
the John Stewart Company would rent the units to 
residential tenants. Residential leases would be for one- 
year terms, and will continue thereafter on a month-to- 
month basis. Preference would be given first to certain 
categories of City or San Francisco Unified School District 
employees, university consortium members (including 
San Francisco State University. Golden Gate University. 
University of California at San Francisco, City College, 
and the San Francisco Art Institute), and then San 
Francisco and Bay Area residents generally. The 
Executive Summary submitted to the Clerk of the Board 
by Mr. Cohen explains the preference classifications. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 






Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Term of Agreement: 



The term of the Agreement between the Authority and 
the John Stewart Company would be seven years. The 
lease would commence after all necessary approvals are 
obtained. 



Rental Rates Under The rental rate for a 2-bedroom unit is $1,542 per month; 
Agreement: the rental rate of a 3-bedroom unit is $1,782 per month; 

and the rental rate of a 4-bedroom unit is $1,990 per 

month. 



Rent Payable by the 
John Stewart 
Company to the 
Authority: 



For base rent for 766 units, the John Stewart Company 
would pay the Authority $200,000 for the first year, 
$400,000 per year for the second and third years, 
$450,000 for the fourth year, and $500,000 per year for 
the fifth, sixth, and seventh years. These base rental 
amounts would be adjusted annuahy based on the 
percentage changes in the Consumer Price Index (CPI). 
Over the seven-year term, the John Stewart Company 
would pay the Authority a total of $2,950,000 million in 
base rent, subject to additional increases based on the 
CPI. 



In addition to the base rent, the John Stewart Company 
would pay the Authority 93 percent of net revenues (after 
payment of operating expenses, funding of a replacement 
reserve, and repayment of the capital investment) from 
the end of the construction period (the 18 th month) 
through the end of the fifth year, 94 percent of net 
revenues for the sixth year, and 95 percent of net 
revenues for the seventh year. The balance of the net 
revenues would be retained by the John Stewart 
Company. During the first 18 months of the Agreement 
only, the John Stewart Company would pay the Authority 
only 9.3 percent of net operating income ("special 
percentage rent"). During this 18-month period, the 
remainder of net operating income would be used to pay 
down construction costs as they are incurred. 

The Executive Summary submitted to the Clerk of the 
Board with the proposed resolutions describes the base 
rents, the proposed percentage rents, the special 
percentage rent, the replacement reserves and the capital 
investment. Economic Planning Systems (EPS), a firm 
retained by the Authority to review the reasonableness of 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

the fees and return on investment, estimated that the 
Authority would receive $43.2 million in percentage rent 
revenues over the seven-year term of the Agreement. 

Costs of The John Stewart Company would pay for all the costs of 

Construction: the reconstruction and renovation of the units to prepare 

them for occupancy, which is expected to take 18 months. 
The Executive Summary submitted to the Clerk of the 
Board by Mr. Cohen describes the work to be performed 
and the capital budget, which includes a 12 percent 
contingency and totals $9,183,612. 

Fees the John Stewart In addition to the above revenues, the John Stewart 



Company Would 
Retain from Lease 
Revenues 



Company would retain, as a management fee, three 
percent of gross collections. For the first year, the 
management fee is expected to be $300,000. In 
subsequent years, the maximum amount would be 
$400,000 per year. 

Additionally, the John Stewart Company would retain as 
a development fee ten percent of total approved 
development costs amortized over 48 months. Based on 
the estimated total construction costs of $9,183,612 and 
other development-related costs, the development fee is 
estimated to be $958,611, reduced by $1,252 for each 
potential rentable unit or rentable unit that has been 
determined will not be rented. 



Operating Expenses: 



Furthermore, the John Stewart Company would retain as 
a one-time marketing fee $175 per rented unit, or a total 
of $134,050, based on 766 rented units. The Executive 
Summary submitted to the Clerk of the Board by Mr. 
Cohen describes all of these fees in greater detail. 

The John Stewart Company would obtain its fees only 
from gross lease revenues collected from the 766 housing 
units. The Authority has no independent payment 
obligation under the Agreement, expect in the case of an 
Authority default. 

The Navy CAM Charges would be payable to the Navy by 
the John Stewart Company, and are estimated to be 
$756,000 annually at full occupancy. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Description: 



Under the proposed Agreement, the John Stewart 
Company must use good faith efforts to (1) fill 25 percent 
of all non-construction jobs with qualified homeless or 
economically disadvantaged San Francisco residents and 
50 percent of all non-construction jobs with San 
Franciscans, generally; (2) consider qualified homeless or 
economically disadvantaged San Franciscans for all 
construction jobs; and (3) subcontract to TIHDI member 
organizations janitorial, grounds keeping and other 
services related to the premises. 

The John Stewart Company would be responsible for 
maintenance of the 766 housing units under the 
Agreement. 

The John Stewart Company would retain the right to 
terminate the Agreement if the Authority defaults on 
either of the following principal obligations: the 
Authority must (i) avoid causing the termination of the 
Master Housing Lease with the Navy and (ii) provide 
certain essential utilities to the premises. 

In the event the Authority defaults on either of these two 
obligations, the Authority would be required to reimburse 
the John Stewart Company the then outstanding amount 
of capital investment made by the John Stewart 
Company. 

However, the Authority currently has no real property 
assets. Therefore, if the Authority defaults on either of 
the two principal obligations, and if the Authority is 
unable to pay the outstanding amount in capital 
investment, then the City would indemnify the John 
Stewart Company the outstanding amount of the capital 
investments made by the John Stewart Company under 
the proposed Indemnity Agreement. In such an event, 
under the proposed resolution, the Authority would then 
reimburse the City for that payment by using future 
revenues from the housing units under the proposed 
Repayment Agreement. 

Mr. Cohen estimates that the City would be exposed to no 
more than $6 million in potential liability under the 
proposed Indemnity Agreement between the City and the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



John Stewart Company. According to Mr. Cohen, this 
calculation is based on the maximum amount of 
unreimbursed costs at any single point in time, because 
90 percent of net operating income during the first 18 
months would be used to pay down a large percentage of 
the construction costs as they are incurred. According to 
Ms. Arbuckle, the default provisions are within the 
control of the Authority and the City and are highly 
remote. 



Items 7 and 8 - Files 99-0128 and 99-0129: 



Resolutions approving and authorizing the Treasure 
Island Development Authority to execute a lease with the 
United States Navy for the first 86 of a total of 222 
housing units on Treasure and Verba Buena Islands to be 
subleased to member organizations of the Treasure Island 
Homeless Development Initiative (File 99-0128); 
approving and authorizing the Treasure Island 
Development Authority to execute four subleases with 
member organizations of the Treasure Island Homeless 
Development Initiative for the first 86 of a total of 222 
housing units on Treasure Island and Verba Buena Island 
(File 99-0129). 

The Treasure Island Homeless Development Initiative 
(TIHDI) was established under federal base closure laws 
in 1994 to develop opportunities for homeless assistance 
through the use of certain facilities at the former Naval 
Station Treasure Island, and is administered by a 
consortium of 14 community-based non-profit 
organizations which are listed in Attachment I, provided 
by Ms. Eila Arbuckle of the Mayor's Office. 

In July of 1996, the Board of Supervisors endorsed a 
Base Closure Homeless Assistance Agreement and the 
Option to Lease Real Property (collectively, the TIHDI 
Agreement), which permitted TIHDI to use certain 
housing units on Treasure Island and Verba Buena Island 
for homeless San Franciscans. The TIHDI Agreement 
requires that TIHDI member organizations show 
adequate service plans prior to subleasing property. The 
service plan for each of the four subleasing TIHDI 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Subject Properties: 

Lessor: 

Lessee: 
Sublessees: 



Term of Each 
Sublease: 



Rent Payable to 
Authority by Each 
Sublessee: 



member organization was submitted to the Clerk of the 
Board, along with the TIHDI subleases. 

86 housing units initially, while improvements are made 
to prepare the remaining 136 housing units for occupancy 
in FY 1999-2000. 

United States Navy. See Master Housing Lease between 
the Authority and the Navy, as discussed above. 

Treasure Island Development Authority 

The following member organizations of TIHDI would 
sublease the subject housing units from the Authority: 
Catholic Charities (30 housing units), Haight Ashbury 
Free Clinics (18 housing units), Swords to Plowshares (24 
housing units), and Walden House (14 housing units). 

Each of the subleases between the Authority and the 
member organizations of TIHDI is 15 years. However, 
according to Ms. Arbuckle, as provided in the TIHDI 
Agreement, these subleases can be "bought out" by the 
Authority from development proceeds related to such 
units if the premises are needed for the long-term 
development of Treasure Island, at $50,000 per unit plus 
certain unamortized costs. 

None. 



Operating Costs: 



Description: 



Each subleasing TIHDI organization would pay for 100 
percent of all operating costs. These operating costs 
consist of the costs of code and seismic upgrades and 
compliance with laws such as disabilities access laws; 
utilities fees; taxes; insurance; and other costs of 
operating, maintaining and repairing the leased premises. 
Additionally, the Navy CAM Charges would be payable to 
the Navy by each sublessee, and are estimated to be 
$219,101 annually at full occupancy. 

The program operated by Catholic Charities, a member 
organization of TIHDI, would provide permanent housing 
and support services to assist homeless families with 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

disabilities and is designed to help these families achieve 
residential, economic and personal stability. 

The program operated by Haight Ashbury Free Clinics, a 
member organization of TIHDI, would provide supervised 
transitional housing and 24-hour care to adults needing 
medical or psychiatric care or substance abuse treatment. 

The program operated by Swords to Plowshares, a 
member organization of TIHDI, would provide supportive 
transitional housing to homeless veterans for a period of 
up to two years while residents are given the skills and 
other tools necessary for a transition back to self- 
sufficient living. 

The program operated by Walden House, a member 
organization of TIHDI. would provide supervised 
transitional housing for homeless adults to assist them in 
overcoming the barriers to achieving self-sufficient living. 

Item 9 - File 99-0130 : Resolution approving and authorizing the Treasure Island 
Development Authority to execute a revenue sharing 
agreement with the Treasure Island Homeless 
Development Initiative regarding the temporary use of 
112 housing units on Treasure and Verba Buena Islands 
in connection with the John Stewart Company sublease. 

Subject Property: The 112 units of the proposed Revenue Sharing 

Agreement are intended for TIHDI use under the TIHDI 
Agreement, but the Authority is permitted to use them for 
market-rate residential leasing for the term of the 
Agreement between the Authority and the John Stewart 
Company. Additionally, 41 Yerba Buena Island housing 
units intended for TIHDI use are available to the 
Authority to sublease to the John Stewart Company for 
the term of the Agreement between the Authority and the 
John Stewart Company. 

Description: Under the proposed revenue sharing agreement. TIHDI 

would receive 40 percent of Percentage Rent paid to the 
Authority from net revenues generated by the subject 112 
housing units on Treasure Island for the term of the 
Agreement between the Authority and the John Stewart 
Company. In addition, from Year 6 through Year 7 for 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 



Comments: 






that Agreement, TIHDI would receive 50 percent of the 
Percentage Rent paid to the Authority from the net 
revenues collected from the additional 41 Yerba Buena 
Island housing units. 

1. On January 28, 1998, the Authority adopted a 
resolution approving and authorizing the issuance of a 
Request for Qualifications (RFQ) for the rehabilitation, 
marketing, lease and management of the housing units on 
Treasure Island and Yerba Buena Island. Attachment II 
provided by Ms. Arbuckle shows that eight firms 
responded to the RFQ. According to Ms. Arbuckle, the 
John Stewart Company was chosen because of its 
responsiveness to housing property management and 
leasing issues and their capability to bring substantial 
capital to the project. 

2. The Authority contracted with Economic & 
Planning Systems (EPS) to assist the Authority in 
developing the business terms of a contract with JSC and 
to review the reasonableness of the fees and return on 
investment to be earned by the John Stewart Company 
and the Authority. The Executive Summary and the 
Final Report of EPS in January of 1999 were submitted to 
the Clerk of the Board with the proposed resolutions and 
contain information about EPS' independent review of the 
projects' proposed costs and revenues, as well as proposed 
business terms. 



3. The Authority is required, subject to annual 
appropriations by the Board of Supervisors, to apply "net 
revenues generated from the use or sublease" of the 
housing units for property management services and 
improvements on Treasure Island and Yerba Buena 
Island. 



Recommendation: 



Approval of the proposed resolutions is a policy matter for 
the Board. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Summary of Legislation and Fiscal Impact: 

The proposed resolutions would further the conversion of Treasure Island and 
Yerba Buena Island to civilian reuse. Currently, the Navy owns 1,000 housing 
units on the former naval base (Naval Station Treasure Island). Of the 1,000, the 
Authority would sublease 766 to the John Stewart Company under the proposed 
Agreement for market-rate residential leasing for one-year terms, with preferences 
given to certain categories of City or San Francisco Unified School District 
employees, members of a consortium of area universities, and then San Francisco 
and Bay Area residents generally. Furthermore, under four separate subleases, 
the Authority would sublease 222 housing units to the Treasure Island Housing 
Development Initiative (TIHDI) to provide housing and social services to the 
homeless. The remaining 12 housing units are reserved for the Delancey Street 
operations, but are not the subject of the proposed resolutions. Of the 766 housing 
units to be subleased to the John Stewart Company, 112 on Treasure Island and 41 
on Yerba Buena Island are part of TIHDI's share, and TIHDI would receive a share 
of the lease revenues generated from them for a period of time under the proposed 
Revenue Sharing Agreement. The John Stewart Company was selected because 
of its responsiveness to housing property management and leasing issues and their 
capability to bring substantial capital to the project. 

The Authority is required, subject to annual appropriations by the Board of 
Supervisors, to apply "net revenues generated from the use or sublease" of the 
housing units for property management services and improvements on Treasure 
Island and Yerba Buena Island. 

The propose resolutions would have the following fiscal impacts: 

REVENUES 

• Approximately $46.2 million in revenues would be payable by the John Stewart 
Company to the Authority ($2,950,000 in base rent, subject to adjustment based 
on the CPI, and $43.2 million in percentage rent revenues) under the 
Agreement between the Authority and the John Stewart Company. 

• Approximately $14 million would be payable by John Stewart Company to the 
Public Utilities Commission for electricity, sewer, and other basic utilities. 

• Approximately $2.6 million in Possessory' Interest Taxes would be payable by 
John Stewart Company to the City's General Fund. 

• Under the Revenue Sharing Agreement, TIHDI would receive 40 percent of 
Percentage Rent paid to the Authority from the net revenues collected from 
leasing 112 TIHDI housing units on Treasure Island for the term of the 
Agreement. For the sixth and seventh 3 r ears, TIHDI would receive 50 percent 
of Percentage Rent paid to the Authority from the net revenues collected from 
leasing 41 Yerba Buena Island housing units. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

29 



Memo to the Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

COSTS and FEES 

• The John Stewart Company would pay for all costs of construction, estimated to 
be $9,183,612, and would obtain its fees only from gross lease revenues, 
estimated to total $3,792,661 over the seven-year term of the Agreement. 

• The John Stewart Company would pay the Navy $756,000 annually for the Navy 
Common Area Maintenance Charge (Navy CAM Charge) based on the square 
footage of interior and exterior space, and the four TIHDI member organizations 
would pay a total of $219,101 annually to the Navy. 

• Under the proposed resolutions, costs to the City are expected to increase for 
police, fire, public works services and utilities for the proposed housing units on 
Treasure Island and Yerba Buena Island. As Attachment III provided by Ms. 
Arbuckle shows, the estimated annual incremental costs of fire and police 
services are $1 million and $0.5 million, respectively. However, the Authority 
was unable to provide the estimated cost increases to the City for public works 
and utilities. The Budget Analyst notes that the City's liability to the John 
Stewart Company under the Indemnity Agreement could be triggered if the 
Authority, for example, failed to provide the' essential utilities for the 766 
housing units under the Agreement between the Authority and John Stewart 
Company and the Authority failed to pay the amount in outstanding capital 
investments. According to Mr. Cohen, the City's exposure to liability under the 
Indemnity Agreement is estimated to be no more than $6 million to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



r — 



FEB 12 1999 12:20 FR CTY 8. CNTY TRSE 1SLND415 274 0299 TO 92520451 P.04/05 

Attachment 1 
Page 1 of 2 



TIHDI 

Treasure Island Homeless Development Initiative 



TIHDI Member Agencies 

The 14 agencies who comprise The Treasure Island Homeless Development Initiative (TIHDI) bring 
an average of 25 years experience in serving; homeless and indigent people. The aggregate value of 
the services they provide comes to over $50 million annually. TIHDI agencies have developed over 
2,000 housing units and have close to 700 units under development. TIHDI agencies are: 

Catholic Charities (1907) 

• Established in 1907 to serve very poor and disenfranchised people 

■ Operates 1 1 emergency, transitional and residential programs providing shelter and support 
services to individuals and families presented with homelessness, HIV/AIDS, and domestic 
violence. 

Coalition on Homelessness. San Francisco (1987) 

• Involves over 1 20 individual and representatives from over 50 organizations to participate in 
its issue/program oriented work groups 

• Publishes the award-winning Street Sheet , written primarily by homeless and formerly homeless 
people and sold by homeless vendors 

Community Housing Partnership (1990) 

■ Acquired and rehabed 217 units of housing for homeless individuals and small families 

• Utilizes its tenant population in all phases & aspects of its operation 

• Provides support and employment services 

Economic Opportunity Council (1964) 

• Designated by SF Board of Supervisors to organize and administer the Community Services 
Program 

• Administers close to $1 2 million annually for a wide array of services aimed at promoting self 
sufficiency for people living in poverty in San Francisco 

Goodwill Industries (1916) 

• Employs 400 people in a three county area 

• 92% of its S1 1 million budget is funded through the sale of donated goods 

Haight Ashbury Free Clinics (1967) 

• Nationally identified leader in substance abuse treatment 

• Operates seven residential programs in addition to a wide range of health services at its clinic 
sites and through consortiums 

• Employs 191 people and has a $1 1 million annual budget 

410 Polrn Ave, Bldg.1, 

Treasure Island. Son Frondsca, CA 94130 

let (415) 274-0311 

Fcx:(4IS) 274-0316 

31 



FEB 12 1999 10:21 FR CTY 2. CNTY TRSE ISLND415 274 0299 TO 92520461 P. 05/05 

Attachment I 
Pape 2 of 2 



HomeBase (1989) 

• Provides regional and national approaches to coordinating solutions to homelessness 

• Assisted community-based agencies to access surplus properties at closing military bases 

Mercy Charities Housing, California (1975) 

• Completed 25 developments with over 1,400 units of affordable housing 

• Has 1 1 projects of a total of 550 units in development 

• Raised over $100 million for completed projects development costs 

Rubicon Programs, Inc. (1973) 

• Has acquired & rehabed 97 units of permanent and transitional housing for homeless and 
disabled people; has 94 units under development 

• Has two businesses which employ disabled and homeless adults: Rubicon Building & Grounds 
Services (a contractor for Treasure Island) and Rubicon Bakery & Catering 

• These two businesses will generate over $3.25 million in 1995-95 

San Francisco Community Recyclers (1980) 

• Handles over 500 tons of materials each month at three sites 

• Operates a reused building materials exchange 

• Total income for FY 94 was close to $1 million 

San Francisco Council on Homelessness (1991) 

• Secured a $3 million HUD grant to implement the Homeless Employment Collaborative 

• Provided leadership for Mayoral Committee charged with producing the San Francisco 
Continuum of Care Plan 

Swords to Plowshares (1974) 

• Operates Northern California's only veteran-specific housing 

• Provides human & legal services to 2,000 veterans a year 

• Annual budget of over $1.5 million 

Toolworks (1975) 

• Provides hundreds of adults with disabilities vocational and educational training as well as 
permanent job placements 

• Annual operating budget dose to $3.7 million 

Walden House (1970) 

• Provides comprehensive services to individuals presented with substance abuse and mental 
health issues 

• Serves over 650 individuals every day, with over 350 of those in WH residential facilities 

• Annual budget over $14 million 

For more information on TIHDI call Sherry Williams at (415) 274-0311 



32 

** TOTAL PAGE. 05 ** 



FEB 12 1999 16:50 FR CTY t CNTY TREE I5LND415 274 0299 TO 92520461 



Office of the Mayor 
san francisco 

Treasure Islanq Project 

410 AwCNL/S or THE PM.MS 

Building 1 . 2nd Floor 

TntAsuRE Island 

San Francisco. CA 94130 

(■415) 27-4-0660 

FAX (415) 274-0299 




P. 02/02 

Attachment II 



Willie Lewis Brown, Jr. 



Request for Qualifications for Property Management Services 

On January 23, 1998, the Treasure Island Development Task Force authorized the issuance of a 
Request for Qualifications for Property Management Services on former naval base Treasure 
Island. The RFQ stated that respondents could propose to provide housing property management 
and leasing services, commercial property management and leasing services, or both. Eight firms 
responded by February 6, 1998, the designated response date. A Selection Committee 
comprising representatives of the Mayor's Treasure bland Project, Mayor's Office of Housing, 
the University Consortium, and the Treasure Island Homeless Development Initiative was 
established by the Task Force to review the responses. The Committee selected four respondents 
for interviews, and following the interviews, recommended that the Treasure Island 
Development Authority negotiate with the John Stewart Company for housing property 
management and leasing. The summary of the Selection Coinmittee's evaluation of John 
Stewart Company follows: 

John Stewart Company 

This team showed an impressive and high degree of competency in their previous experiences 
and qualifications in property management and leasing. Their overall business acumen and 
abilities of key personnel were shown by the success of other similar projects. More importantly, 
they were found to be able to respond to all housing property management and leasing issues in 
a fast paced effective way. Their capability to bring substantial capital to the project is crucial 
for the required rehabilitation and operation of the housing. Overall, the unanimous lop choice 
of the selection committee. 

The Authority authorized negotiations with the John Stewart Company at its regular public 
meeting of February 25, 1998. 

The eight companies responding to the RFQ were (the firms interviewed are printed in bold): 



Chpper Cove Partners 
John Stewart Company 
KTB Realty Partners " 

LaSalle Partners/ConAm Management 



Madison/Heritage LLC 
Mid-Peninsula Housing Coalition 

Total 
Urbaiec 



Page 2 

33 



** TOTAL PAGE. 02 ** 




re* id 19^3 1^:37 FR CTY I CNTY TRSE ISLND415 274 2299 TO 92520461 P. 02/03 

Attachment III 

Office of the Mayor' m^^^Ww Willie Lewis Brown, Jr. 

san francisco 

Treasure Island Project 

410 Avenue op the Palms 

Blmloinc 1. 2nd Floor 

TRCASLme Island 

San Francisco, CA 9-4130 

(415) 274-0660 

FAX (415) 274-0299 

Projected Fiscal Impacts of TI Housing Proposal 

Unlike other San Francisco development projects which generate property tax or possessory 
interest tax revenues to cover the costs the City incurs for providing basic public services such as 
Fire, Police, and Public Works, the TI Project generates possessory interest taxes and makes 
direct payments for basic public services. The payments for these public services historically 
have been funded in part by the Cooperative Agreement between the Navy and the Authority and 
the revenues the Authority generates from leasing TI facilities. For FY 1999, lease revenues 
were budgeted at SI. 8 million. The Navy funds only the cost of services to areas of the Island 
not leased to the Authority, and only at the level of service the Navy would provide at any closed 
base. These payments currently total S4 million per year, and are anticipated to be severely 
reduced for federal FY 2000 (10-01-99 through 09-30-00). 

The Authority projects that the costs of providing basic public services will increase throughout 
FY 2000 due to the proposed housing leases and the federal Job Corps' plans to increase its 
student population from 120 residents to 800 residents. These population increases will generate 
a need for additional police and fire services, at the same level of service provided to other San 
Francisco neighborhoods. For fire protection, TI is presently served by 1.5 fire companies at an 
annual cost of SI. 9 million. By the end of FY 2000, the projected TI population increases will 
require 2.5 companies, including one ladder truck to assure that adequate fire suppression 
services can be provided to the Job Corps which will house its students 4 story facilities. The TI 
Project Office has received an estimate of S4.6 million per year for 2.5 fire companies, but this 
figure is preliminary and subject to negotiation. The annual, additional incremental cost of fire 
services attributable solely to serving the housing residents is estimated to be SI million, and the 
annual incremental cost of police services attributable solely to serving the housing residents is 
estimated to be SO. 5 million. These estimates are summarized below: 





Current 


Projected 


FY 2000 Increase Attributable to 




FY 1999 


FY 2000* 


Housing 


Job Corps 


Fire 


SI. 9 million 


$4.6 million 


SI million 


$1.7 Million 


Police 


SO. 5 million 


$1.5 million 


$0.5 million 


$0.5 million 



The current, estimated revenues the City will receive from the housing leases include $46 milli on 
to the Treasure Island Development Authority, $2.6 million in possessory interest taxes to the 
City's General Fund and SI 4 million to the Public Utilities Commission. 



Page 1 

RECYCLED PAPER 

33a 



Memo to Finance & Labor Committee 

February 17, 1999 Finance & Labor Committee Meeting 



Item 10 -File 99-0157 

Department: 

Item: 



Amount: 



Source of Funds: 



Term of Contract: 



Department of Human Services (DHS) 

Resolution authorizing a retroactive increase in 
enrollment and service level for the CalWORKs childcare 
program and extending the contract term by one year by 
modifying the existing contract with the Children's 
Council of San Francisco in the amount of $40,894,216 to 
provide for an "increase in enrollment, program costs and 
a number of capacity building initiatives." 

Existing Contract $13,802,435 

Proposed Modification 40,894.216 

Total Modified Contract Amount S54.696.651 

Attachment I provided by Ms. Teresa Joseph of DHS 
contains a list of all funding sources for the $54,696,651 
contract, including total City funds of $8,560,412 
($3,909,518 for the proposed modification) and total State 
funds of $46,136,239. According to Ms. Julie Brenman of 
DHS, of the $3,909,518 in City funds needed for the 
proposed contract modification of $40,894,216, only 
$1,341,618 of these City funds have been appropriated by 
the Board of Supervisors for the current fiscal year. The 
remaining $2,567,900 in City funds needed for the 
proposed contract modification are subject to 
appropriation approval by the Mayor and the Board of 
Supervisors in the Fiscal Year 1999-2000 Budget. 
Further, of the $36,984,698 in State funds needed for the 
proposed contract modification of $40,894,216, only 
$10,101,819 have been approved by the State for the 
current fiscal year. The remaining $26,882,879 in State 
funds needed for the proposed contract modification are 
subject to appropriation approval by the State in the 
State's Fiscal Year 1999-2000 Budget. 

The existing contract between DHS and the Children's 
Council of San Francisco is for the two-year period from 
July 1, 1997 through June 30, 1999. This resolution would 
extend the term of the contract by one year to June 30, 
2000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



Memo to Finance & Labor Committee 

February 17, 1999 Finance & Labor Committee Meeting 

Description: The Children's Council of San Francisco is a nonprofit 

organization that provides childcare support services, 
including resource and referral services for low-income 
families. 

In addition to extending the term of the contract by one 
year, the proposed resolution would authorize a 
modification to the existing contract between the 
Department of Human Services and the Children's 
Council of San Francisco through an increase of 1,343 
children on average per month to be served under the 
contract with the Children's Council, from 1,241 children 
on average per month to 2,584 children on average per 
month. The proposed contract modification would also 
provide for two capacity building initiatives to (1) support 
the creation of 700 additional licensed childcare slots from 
17,117 to 17,817 and (2) perform outreach and enrollment 
for specialized childcare pilot programs as described in 
Comment No. 1. 

A capacity building initiative is a system of delivery 
designed to broaden the availability of childcare by 
increasing the number and quality of childcare slots, 
resources and services. This system of delivery includes 
providing childcare providers with technical assistance, 
training programs, scholarships, and developmentally 
appropriate toys and supplies. Each childcare slot 
represents one space in a childcare facility for providing a 
child with childcare services. 

Prior to Federal Welfare Reform, the Children's Council of 
San Francisco provided childcare services under contract 
with DHS. In December 1997 the contract was modified to 
provide services under the California Work Opportunities 
and Responsibility to Kids (CalWORKs) Program. 
CalWORKS was established by the State as part of 
Federal Welfare Reform to provide assistance and 
childcare services to families participating in approved 
welfare to work activities. The modified contract 
consolidated the following revenue sources: CalWORKs 
Stages I and II. Board of Supervisors City Childcare 
subsidies and Familv Preservation subsidies. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance & Labor Committee 

February 17, 1999 Finance & Labor Committee Meeting 

Ms. Joseph states that in order to continue the 
consolidation of revenue sources and that because the 
Children's Council of San Francisco is the primary 
provider of childcare support services to families who are 
moving from welfare to work, the Children's Council is 
qualified to continue managing the growing CalWORKs 
childcare service system, according to Ms. Joseph. DHS is 
requesting an increase of $40,894,216 or 296 percent over 
the existing contract of $13,802,435 with the Children's 
Council, which would result in a total modified contract 
amount of $54,696,651. The existing contract was 
previously approved by the Board of Supervisors for two 
years from July 1, 1997 through June 30, 1999 (File No. 
98-371). The proposed contract would be for the period 
January 1, 1999 through June 30, 2000, thereby 
extending the current contract by one year, from July 1, 
1999 to June 30, 2000. 

Budget: A summary budget for the modified contract amount of 

$54,696,651 for the period from July 1, 1997 through June 
30, 2000 is as follows: 

Existing Contract Including 

77 Positions Under Contract $13,802,435 

Proposed Modification Including 

81 Additional Contract Positions $5,784,023 

Operating Expenses & Childcare Payments* 35,110,193 40,894.216 

TOTAL CONTRACT S54.696.651 

*According to Ms. Joseph, Childcare Payments average $626 per month per child. 

Ms. Joseph has provided the budget details as shown in 
Attachment II, broken down by the existing contract of 
$13,802,435 and the proposed contract modification of 
$40,894,216 to support the above budget of $54,696,651. 

Comments: 1. Regarding the 296 percent increase in childcare 

services, Ms. Joseph states this proposed increase of 
$40,894,216 to the existing contract of $13,802,435 will 
allow the Children's Council to: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance & Labor Committee 

February 17, 1999 Finance & Labor Committee Meeting 



a) serve 743 more Stage I 1 clients on average per 
month; from 960 on average per month in 1998 to 
1,703 on average per month by June 2000; 

b) serve 298 more Stage II 2 clients on average per 
month; from 266 on average per month in 1998 to 
564 on average per month by June 2000; 

c) spend $80 more per Stage I client on average per 
month; from $550 per client on average per month 
in 1998 to $630 per client on average per month 
by June 2000; 

d) spend $250 more per Stage II client on average 
per month, from $750 per client on average per 
month to $1,000 per client on average per month; 

e) implement several Program enhancements, 
including (1) increasing the accessibility to 
CalWORKs childcare services by implementing a 
childcare hotline from 7:00 a.m. to 7:00 p.m; and 
(2) developing a CalWORKs childcare parent 
information brochure; 

f) provide information to Program childcare 
providers to increase the quality of childcare; 
including (1) conducting 80 provider site visits 
annually, to provide technical assistance to 
program childcare providers by program 
specialists, and (2) producing two newsletters 
annually with childcare information for all parent 
participants and their childcare providers; 

g) develop and maintain community advisory boards 
in four targeted neighborhoods; 

h) establish two capacity building initiatives, 
including (1) supporting the expansion of a 
minimum of 700 licensed childcare slots, from 
17,117 childcare slots to 17,817 childcare slots, (2) 
providing outreach and enrollment for specialized 
care pilots and early capacity realization. 
Specialized care pilots are pilot programs 
designed to provide childcare to families with 
unusual childcare needs, including families with 



1 The proposed modified contract states that Stage I "begins upon the entry of a person into the 
CalWORKS assistance program." and that it is "the state legislated initial stage of childcare for 
families." 

2 The proposed contract states that Stage II begins when "the recipient is transitioning off of aid... 
Childcare is available in Stage II for up to 24 months after the recipient has left aid, as long as the 
recipient meets income and all other requirements. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance & Labor Committee 

February 17, 1999 Finance & Labor Committee Meeting 

mildly ill children, emergency back-up cbildcare, 
and children with developmental delay disabilities 
or similar special needs. Early capacity realization 
is an initiative to place childcare clients in these 
specialized childcare pilot programs as soon as 
possible. 

Attachment III provided by Ms. Joseph provides 
additional information for the above listed caseload 
data, program enhancements, and capacity building 
initiatives. 

2. It should be noted that the 81 new contract positions 
which would be added under the modified contract, 
from 77 to 158, are all contract positions and are not 
City employees. All funding to continue the contract 
with the Children's Council of San Francisco, including 
General Fund monies, are subject to appropriation 
approval by the Board of Supervisors. 

3. Mr. Daniel Kim of DHS does not anticipate a shortfall 
in funds needed for the proposed contract modification 
for Fiscal Year 1999-2000. However, Addendum B, 
Section 11. G of the proposed contract states the 
"Agreement will terminate without penalty, liability or 
expense of any kind to City at the end of any fiscal 
year if funds are not appropriated for the next 
succeeding fiscal year. Contractor's assumption of risk 
of possible non-appropriation is part of the 
consideration for this agreement." 

4. According to Ms. Joseph, in January of 1999 when the 
State allocated a portion of the additional funding for 
the contract modification, the DHS authorized the 
Children's Council of San Francisco to begin providing 
the enhanced childcare services, prior to obtaining 
approval by the Board of Supervisors. Therefore, this 
proposed legislation results in the requirement for 
ratification of actions previously taken. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 






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Attachment I 



~:~-^ z .:- 



39 



"1939 15:33 



DEFT OF HJHSN SUC5 



415 431 



273 



P.e3/S4 



3udget Children's Council of San Francisco, Existing Contract 



Personnel 




| 7/1/97-5/30/99 | 


SaJaries 




I 


S 1,431.091.00 


Frinae Benefits 






S 319.537.00 | 




Operating Expense (see a 


etail be 


lew) 


S 1,340,330.00 


Total Salaries, Fringe and 

Expense 


Opera 


jng 


$ 3,091.053.00 


Childcare Payments 






S 10,711,378.00 




Total Ongoing Budget 






| S 13,802.436.00" 



Attachment II 
Pase 1 of 2 



Operating Expense Detail: 

Consultant Professional Services 5 450,819.00 

Office and Program Supplies S 88,875.00 

Printing $ 39.658.00 

Postage $ 41,734.00 

Enterprise Zones S 30,000.00 

Travel S 13,017.00 

Staff Training $ 25,214.00 

Insurance S 32,853.00 

Telephone $ 55,059.00 

Bank Charges/Checks $ 5,571.00 

Rent S 254,596.00 

Utilities S 3,490.00 

Equipment Maintenance S 4,350.00 

Audit $ 24,275.00 

Computer Maintenance 5 22,500.00 

Depreciation $ 12,215.00 

Equipment $ 199.200.00 

Indirect Costs 5 25,697.00 

Total Operating Expense $ 1,340,330.00 



'The $1 difference between the amount listed here and the amount in the proposed legislation is due to rounding. 



40 



FEB-10-1S99 18: u 



DEPT OF HUrifiN SUC5 



415 421 8270 P. 02/04 



Budget Children's Council of San Francisco, Contract Modification 



Attachment ]\ 
Page 2 of 2 



Personnel 


1/1/99-6/30/39 


7/1/99-5/3C/0C 


1/1/99 to 6/30/00 


Salaries 


s 


1.226.56000 | S 


3.399.829.00 


S 


4.626.389.00 


Frinqe Benefits 


s 


341.337.00 


s 


816,299.00 


5 


1.157.636 00 






Operating Expense (see detail beiow) 


! 


1,335.657.00 | S 


2.841,612.00 


$ 


4.177,459.00 


Total Salaries, Fringe and Operating 














Expense 


$ 


2,903,754 00 


S 


7,057,740 00 


S 


9.961.494.00 


Childcare Payments • 


s 


8.539,583.00 


$22,393,040 00 


$ 


30,932,72300 








Total Ongoing Budget 


S 11,443.437.00 


$29,450,780 00 


s 




Opearting Expense Detail 


1/1/99-6/30/99 


7/1/99 - 6/30/00 


1/1/99 to 6/30/00 


Program Supplies 


S 


10,605.00 


S 


5,605.00 


S 


16.210.00 


Office and Program Supplies 


S 


40.87300 


1 


92.142.00 


$ 


133.015 00 


Pnnting 


S 


20,183 00 


s 


54,470 00 


$ 


74.65300 


Newsletter 


$ 


7,973.00 


$ 


11,175 00 


$ 


19,148.00 


Postage 


S 


25,529.00 


$ 


71.965.00 


S 


98,494 00 


Collaboration with Wu Yee 


S 


468.337.00 


$ 


1,368,109.00 


$ 


1.836.446.00 


Training and Recruitment Mini-grants 


S 


20.000.00 


s 


5,000.00 


$ 


25,000.00 


Enrollment Projects 


5 


28,000.00 


s 


2.000.00 


s 


30.000.00 


SFFDC Newsletter 


5 


4,500.00 


$ 


4,500 00 


$ 


9,000.00 


City College cf S.F. Certifications 


5 


64.800 00 


s 


135,000.00 


$ 


199,800 00 


Professional Development Project 


S 


26.000.00 


s 


24,000.00 


$ 


52,000.00 


Local Travel 


5 


4.059.00 


$ 


1.967.00 


s 


6,025.00 


Staff Training and Conference 


S 


14,B5O.O0 


$ 


40,230.00 


$ 


55,080.00 


Provider Training & Incentives 


5 


13,00000 


$ 


2.000.00 


s 


15,000 00 


Flngerpnnt Clearance fees 


S 


18,000.00 


5 


18,000.00 


$ 


36,000.00 


Toy Lending Library 


S 


1.000.00 


$ 


1,000.00 


$ 


2.000.00 


Insurance 


S 


17,412.00 


s 


46,601.00 


$ 


64.01300 


Telephone 


5 


32,269.00 


s 


73,669.00 


s 


105.938.00 


Bank Charges 


S 


1,485.00 


$ 


3,969.00 


$ 


5,454.00 


Rent and Utilities 


s 


194,404.00 


$ 


459,958.00 


$ 


654,362.00 


Equipment Maintenance 


s 


6.793.00 


s 


17.820.00 


s 


24,613.00 


Audit 


5 


8.392.00 


s 


22.017.00 


$ 


30.40S.00 


Computer Maintenance 


$ 


4,500.00 


$ 


11,880.00 


$ 


16.360.00 


Software Maintenance 


5 


35,000.00 


$ 


79,800 00 


$ 


114.800.00 


Depreciation 


S 


3,938.00 


s 


9,825.00 


s 


13.753.00 


Telephone Equipment 


S 


30,000.00 


s 


66,000 00 


5 


96.000 00 


Moving 


5 


33,000.00 


$ 


66,000 00 


S 


99,000.00 


Equipment for new staff 


S 


197,955.00 


s 


146.910.00 


S 


344,865.00 


Total Operating Expense 


s 


1,335.857.00 


$ 


2.841.612.00 


$ 


4,177,469.00 



'Childcare Payments are pavments to childcare providers for services per child per month. 

**The Si difference between the amount listed here and the amount in the proposed legislation is due to 
rounding. 



"""-L =.22 



41 



E>: a ,. F^B-02^1^;yi_6':';il . V- • DEPT OF HUMfiN SUCS 415 4319270 P. 04/07 

r^/'^'r^i^^^f'il^V'"-' ' • Attachment IH 

m #BPSR5^ ' ■ Page 1 of 3 

l^frA&lM^ SERVICE OBJECTIVES: 

: ^;^:?£^l;&:^ v o-^-r.. -"■■••-■'. 

:v ; 'S'^^?VTAl'f J^ovidc'child care case management services as follows: 



V?~fc* Contractor will provide timely follow-up to 100% of the referrals made by the DHS 
\"'<<;.JEmplbyment Specialists. Once a referral is received, the family will be provided with fol- 
•-wT:.;?/~ low-up (as defined in JJ-K). 

. ■''.'"' 2. ':in CalWORKs Stage I: Provide case management services to the families of a monthly 
average of 1 ,528 children served by June '99. (Average Jan. thru June) 

'•"3.'" In ChTWORKs Stage I: Provide case management services to the families of a monthly 
• •' average of 1,703 children served by June ; 00. (Average July thru June) 

4. "In CalWORKs Stage II: Provide case management services to the families of a monthly 
. average of 564 children served by June '00. 

5. In Board of Supervisors' City Child Care subsidy program: Provide case management 
services to the families of a monthly average of 257 children by June '00. 

6. In Family Preservation and Support subsidy program: Provide child care payment 
services on behalf of Family Preservation subsidized families: A minimum of 60 undupli- 

. cated children will receive subsidized care payments in childcare in approved sites where 
Mental Health Services are available by June 30 th , 2000. 

B. Program enhancements 

1. Contractor will implement a CalWORKs Childcare Hotline on weekdays from 7 ajn. to 
7 p jn. The hodine (or CalWORKs Childcare Call-line) will provide accessibility via 
pager or cell phone or other technology to ensure ready accessibility for families having 
any problem with their child care under CalWORKs. Plan and implement a Hotline to 
begin operation by Feb. 15th, 1999. 

2. Develop a CalWORKs child care parent information brochure 

a) Draft brochure to be completed by 2/28/99. 

b) The brochure will be published and distributed in five languages including (English, 
Spanish, Chinese, Vietnamese and Russian) by 4/30/99. The brochure will include 
families' rights and the child care services CalWORKs for which recipients are eligible. 

C. Provide information to program childcare providers to increase the quality of childcare, and 
meet the needs of parents and children. 

1 . By June 1999, conduct 80 provider site visits annually, to provide technical assistance to 
program child care providers by program specialists. 

2. Produce two newsletters annually with child care information for all parent participants 
and their child care providers. 

D. With the assistance of Department, develop and maintain community advisory boards in a 
minimum of four (OMI, Visitation Valley, Bay View and Mission) of the six priority neigh- 
borhoods by June 30, 1999. These boards will consist of parents, FDC providers, and center 
providers. Advisory Boards may meet monthly and will minimally meet quarterly. 

E. CalWORKs Childcare Capacity Building: 



42 



BP. FEB-02-1999 16:11 



Dfcr I Ur MUiiHiN svlo 



Anachment ir j 
Page 2 of 3 



Contractor will support the expansion of a minimum of 700 licensed child care slots 

by supporting providers a variety of supports directly and through subcontracts: 

a) Up to 800 hours of technical assistance to 3-4 Private Industry Council contracted child 
development career training programs. [Professional Development & Corinne Commu- 
nications] 

b) 90+ certified units of child development coursework and collaboration for 3-4 Private 
Industry Council contracted child development career training programs. [City College] 

c) Develop a minimum of 3 classes, with translation of key training materials, of 
CPR/First Aid training in Cantonese, providing training to a minimum of 36 child care 
applicants or licensing renewals. [Wu Yee Children's Services] 

d) Provide scholarships to approximately 40 low income, family child care applicants to 
assist with fees and other initial costs related to family child care start-up cost. 
[CCSF/Wu Yee] 

e) Provide scholarships to approximately 12 family child care providers to attend confer- 
ences, classes or other professional development. [CCSFAVu Yee] 

f) Provide child care for training events and job fairs and child care provider events as re- 
quested or approved by DHS. Approximately 12 events will be supported with the pro- 
vision of on-site child care. (May not need to be licensed.) .[CCSF/Wu Yee] 

g) Provide training incentives and recruitment resources in the form of tangible supplies 
and safety equipment to approximately 100 child care applicants. [CCSF/Wu Yee] 

h) Provide support to child care providers by providing quality dcvelopmentally appropri- 
ate toys to a minimum of 20 providers through a toy lending library. [CCSF/Wu Yee] 

i) Provide 600 newsletters bi-monthly to licensed family child care providers. [San Fran- 
cisco Family Child Care Network] 

j) Assist with the selection and purchase of developmentaily appropriate toys and supplies 
for five Career Drop-in centers/child visitation centers. [CCSF/Wu Yee] 

k) Provide fees for approximately 120 child care training applicants and 60 substitute pool 
applicants. [City College and Professional Development] 

1) Complete a salary survey of providers to support capacity planning and building and to 
support worthy wage efforts. [Professional Development] To be completed by June 30 th , 
1999. 

Outreach and enrollment for specialized care pilots and early capacity realization 

a) 100% of the families subsidized through this contract who arc eligible for specialized 
care services will be provided with outreach information regarding the programs. 

b) Outreach and enrollment for mildly ill care. 

(1) Outreach campaign to begin within 30 days of program implementation, as indicated 
DHS. 

(2) A minimum of 450 families will be enrolled in one or more emergency back-up care 
programs by 6 months from program start-up. 

c) Outreach and enrollment for emergency back-up care. 



43 



EB-02-1999 IS: 12 DEPT DF HUMAN SUCS 415 431 S270 Attachment m 

Page 3 of 3 

(l)Ouireach campaign to begin within 30 days of program irnplementation, as indicated 
DHS. 

(2)A minimum of 450 families will be enrolled in one or more emergency back-up care 
programs by 6 months from program start-up. 

d) Outreach and enrollment for special needs care. 

(l)Outreach campaign to begin within 60 days of program implementation, as indicated 
by DHS. 

(2) A minimum of 35 children will be enrolled in the program by 6 months from pro- 
gram start-up. 

e) Outreach and enrollment for supports for exempt care providers. 

(1)A rninimum of 150 exempt care providers will be directly provided with training, 
health and safety supplies, or other tangible supports. 

(2) A rninimum of 25 license-exempt care providers will be enrolled in a License- 
exempt Care Support Program (to be contracted outside of this contract) by 3 months 
from program start-up. (Program start up date notification will be made bv DHS to 
CCSF). 



kk 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Item 11 -File 99-0183 

Item: Hearing to consider the California Community Dispute Services 

(CCDS) contract and program. 

Description: The California Community Dispute Services (CCDS) is a non-profit 

organization that provides mediation and arbitration services to 
all persons in San Francisco based on referrals from the District 
Attorney's Office, the Adult Probation Department, the Trial 
Courts or through direct contact by individuals. According to Mr. 
Thorn Bateman, the Chairman of the Board and the Chief 
Operating Officer of CCDS, CCDS has been providing such 
mediation and arbitration services to the public since 1976. Mr. 
Bateman reports that the CCDS currently has contracts totalling 
$220,400 with the City, including contracts with (1) the Adult 
Probation Department for $18,000 for cases referred by the Adult 
Probation Department for arbitration and mediation services, (2) 
the Mayor's Office, through, the Adult Probation Department, for 
$50,000 for a Community Court project initiative, funded through 
a Criminal Justice grant and (3) the Trial Courts for $152,400 to 
provide arbitration and mediation services for the resolution of 
certain types of disputes referred by the Courts. Mr. John Madden 
of the Controller's Office notes that the cost for the Trial Court 
contract is funded through a surcharge of $3.00 on court filing fees 
that are paid to the Trial Courts and deposited into a Dispute 
Resolution Program Fund. According to Mr. Bateman, under the 
Trial Court contract, CCDS will provide arbitration and mediation 
services to approximately 1,100 cases, at an average cost of 
$138.55 per case, based on the annual contract of $152,400 for FY 
1998-99. However, Mr. Bateman advises that the CCDS also 
provides various other services as part of this contract, such as 
information and referral for an additional 500 cases. 

Mr. Bateman reports that in addition to such Adult Probation and 
Trial Court referrals and other general arbitration and mediation 
services, approximately 12 months ago, CCDS began receiving 
referrals from the District Attorney's Office of persons arrested for 
violation of Section 647(b) of the State Penal Code, for solicitation 
of prostitution and Section 315 of the State Penal Code, for 
residing or keeping a house of prostitution, both potential 
misdemeanors. Mr. Bateman notes that these referrals were based 
on State Penal Code 14152, which states that "The District 
Attorney may refer cases involving conduct which could be charged 
as a misdemeanor to the community conflict resolution program." 
State Penal Code 14151 states that the District Attorney may 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



45 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

establish a community conflict resolution program to provide 
alternative dispute resolution and that the District Attorney may 
contract with a private entity to provide these dispute resolution 
services. However, Mr. Bateman notes that a written contract was 
never executed between the District Attorney's Office and the 
CCDS to provide such services and the District Attorneys Office 
did not pay CCDS to provide such services. 

According to Ms. Reve Bautista of the District Attorney's Office, 
based on a review of the case and the background criminal records 
of the individuals arrested, persons arrested for these 
misdemeanor charges related to prostitution could be referred to 
CCDS before the District Attorney filed charges of criminal 
complaint through the Trial Courts system. In those cases, the 
District Attorney sent a letter to the individuals arrested 
informing them that in lieu of filing a case with the Trial Courts, 
the arrested person could voluntarily contact CCDS in an attempt 
to resolve the case. At the same time, the District Attorney would 
send a copy of the Police report to CCDS regarding the referred 
case. 

According to Mr. Bateman, a total of 456 prostitution and hou-' oC 
prostitution cases were referred to CCDS from the District 
Attorney's Office between July 1. 1998 and November 30, 1998, a 
period of five months. However, Mr. Bateman notes that since the 
CCDS program was voluntary, many arrested individuals did not 
contact CCDS to have their cases heard by CCDS. Mr. Bateman 
provided the following breakdown of these cases: 

Number of Cases 
Referred by Distrst 
Attorney and 
Heard b'v CCDS 

42 
201 
243 

According to Mr. Bateman, during this same five-month period, a 
total of 1,723 cases were heard by CCDS. Therefore, these 243 
prostitution solicitation and house of prostitution cases 
represented approximately 14 percent of CCDS caseload during 
this period. 





Number of 




Cases Referred 




By District Attorney 




To CCDS 


647 (b) Penal Code Cases 


91 


315 Penal Code Cases 


365 


Total 


456 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 






Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Review of Practice of Collecting Fees Supposedly Necessary to 
Recover Costs for SFPD Overtime Investigations 

Mr. Bateman reports that he personally conducted most of the 
CCDS hearings for these cases pertaining to arrested individuals 
referred by the District Attorney. In attendance at these hearings 
would be the arrested individuals, usually an attorney 
representing the arrested persons, Mr. Bateman and a 
representative from the Police Department's Vice Squad. 
According to Mr. Bateman, the Police Department's representative 
would read the Police report and provide a breakdown of the costs 
that the Police Department incurred in overtime expenses related 
to the arrest of the individuals. Mr. Bateman reports that part of 
the hearing process would be to negotiate an amount that the 
arrested individuals would pay the Police Department for the 
Police Department's overtime costs. According to Mr. Bateman, 
there was not a standard fee to be paid to the City, but rather the 
amount was negotiated, based on the amount reported by the 
Police Department in overtime costs incurred, the number of 
individuals arrested and the ability to pay. In general, Mr. 
Bateman reports that the amount agreed to be paid by the 
arrested individuals was almost always less than the cost of the 
overtime incurred on the case by the Police Department. 

Justification for Police Department Overtime Investigations of 
Massage Parlors 

According to Lieutenant Ray Kilroy of the Police Department, the 
Vice Squad of the Police Department needs to use overtime for 
such arrests and investigations related to prostitution and 
massage parlors to supplement the amount of time available to the 
14 Police Inspectors assigned to the entire Vice Squad. Lieutenant 
Kilroy reports that in order to continue the other Vice activities at 
the same level, overtime is necessary when additional arrests and 
investigations are conducted for cases pertaining to prostitution 
and massage parlors. 

SFPD Collection and Accounting System for Fees 

Both Mr. Bateman and Lieutenant Kilroy confirm that separate 
checks were to be mailed by the individuals to the Police 
Department, for the amount agreed to at the hearing. Lieutenant 
Kilroy of the Police Department reports that a total of $26,000 was 
billed to these arrested individuals for the Police Department Vice 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

Squad's overtime for the seventeen-month period between July of 
1997 through November of 1998. However, these checks were 
made out to the Police Department, rather than the City and 
County of San Francisco. Mr. Madden reports that, as of December 
of 1998, any such checks now being received are made out to the 
City and County of San Francisco, and are being deposited and 
credited to the City's General Fund. 

Of the $26,000 total, Lieutenant Kilroy reports that, to date, the 
Police Department has collected $22,000. According to Captain 
Alex Fagan of the Police Department's Fiscal Division, the Vice 
Squad received the checks, kept the accounts and made the 
deposits. The Fiscal Division only received monthly statements 
from the City's Bank of America account regarding the total 
amount of the deposits and did not keep financial records 
regarding the fees collected from individual participants. 
According to Lieutenant Kilroy. if these individuals do not pay the 
agreed upon amounts, warrants are requested to be issued by the 
District Attorney for their rearrest. 

Lieutenant Kilroy could not provide a breakdown of the number of 
hours of overtime or the costs associated with this overtime that 
the Police Department's Vice Squad incurred on these prostitution- 
related cases. Lieutenant Kilroy reports that overtime records 
were not separated from the entire Vice Squad, which includes not 
only prostitution cases, but also pimping, bookmaking, pandering, 
alcohol and tobacco violations, bingo, etc. Therefore, the Police 
Department is unable to determine how much of the costs were 
recovered in this program for the overtime expenses incurred. 
However, Lieutenant Kilroy reports that the Vice Squad is now 
maintaining separate overtime records and costs by type of 
violations. 

CCDS Collection and Accounting Svstem for Fees 

Mr. Bateman also reports that CCDS charged the arrested 
individuals that attended these hearings an administrative fee for 
CCDS' services. The initial letter to the arrested persons cited the 
administrative fees and requested payment by cash, cashier's 
check or money order payable to CCDS. In general, these CCDS 
administrative fees were $250 for the 6470b) cases (solicitation of 
prostitution) and $50 to $75 for the 315 cases (residing or keeping 
a house of prostitution), although Mr. Bateman reports that these 
amounts were also negotiable. According to Mr. Bateman, CCDS 
collected a total of $12,421 from these administrative fees for the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

243 cases during the period from July 1, 1998 through November 
30, 1998. However, Mr. Bateman cautions that these cases include 
all types of prostitution-related cases referred to CCDS, such as 
prostitution arrests due to newspaper ads and occasional street 
solicitation as well as from residing and keeping a house of 
prostitution. None of these CCDS administrative fees were paid to 
the City. 

Mr. Bateman reports that all CCDS records related to these 
prostitution cases over one year old were destroyed because there 
is a statute of limitation of 12 months for criminal misdemeanors. 
Therefore, Mr. Bateman reports that he does not have data, that is 
over one year old, related to these cases. In addition, Mr. Bateman 
reports that a computer hard drive failure prevents the CCDS from 
generating caseload data from January through June of 1998. 

According to Mr. Bateman, in lieu of paying these fees, the 
arrested individual generally received one of two options: (1) 
community service, or (2) dismissal. 

District Attorney Data Collection and Reporting Systems 

Ms. Bautista reports that although the District Attorney referred 
these prostitution related cases to CCDS, the District Attorney did 
not maintain any data regarding the number of cases referred, the 
number of letters sent, when the letters were sent, the number of 
clients that did or did not take advantage of the CCDS voluntary 
program or any other data related to these actions. No fees were 
paid by the District Attorney to CCDS. 

Status of Referring Massage Parlor Arrestees to CCDS 

According to Mr. Bateman and Ms. Bautista, as of December of 
1998, the District Attorney's Office is no longer referring the 647(b) 
solicitation of prostitution or 315 residing or keeping a house of 
prostitution misdemeanor cases to CCDS. However, Mr. Bateman 
reports that prostitution cases related to massage parlors are still 
being referred to CCDS that involve license and permit violations, 
as well as other quality of life crimes, such as selling alcohol or 
cigarettes to minors and non-injury battery cases. Mr. Bateman 
reports that CCDS continues to collect their administrative fees 
and is now collecting the charges made by the Police Department 
for Police overtime expenses and CCDS is making the deposits to 
the City and County of San Francisco accounts directly. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 

According to Ms. Bautista, the bulk of the prostitution-related 
cases are now being referred to Standing Against Global 
Exploitation (SAGE), a non-profit organization that has a contract 
with the District Attorney's Office to provide assessment, 
translation, housing assistance, education courses, counseling and 
other support services for the arrested persons. Ms. Norma 
Hoteling, the Director of SAGE reports that SAGE is currently 
providing services to approximately 140 women per week, 
including Court referrals and women in the criminal justice and 
probation system. Ms. Hoteling reports that SAGE has a contract 
with the District Attorney's Office for $89,000 for FY 1998-99. Ms. 
Hoteling reports that SAGE does not collect any fees from the 
arrested individuals. 

Comments: 1. In September of 1998, the Board of Supervisors approved an 

amendment to the City's Administrative Code to authorize the 
District Attorney to collect fees from participants in the First 
Offender Prostitution Program (Ordinance No. 289-98). Under this 
ordinance, the District Attorney can collect an administrative fee 
of up to $500 from persons violating Penal Code Section 647(b) 
who are determined eligible to participate in the First Offender 
Prostitution Program. In accordance with this ordinance, these 
proceeds are used to defray the costs of administering the First 
Offender Prostitution Program. Ms. Bautista reports that the First 
Offender Program is one of the programs which SAGE has been 
contracted to provide. 

2. Mr. Madden reports that the City Attorney is drafting a 
proposed ordinance to amend Part III, Chapter 10 of the City's 
Administrative Code to establish a Community Courts Dispute 
Resolution Fund. Under this proposed ordinance, this Community 
Courts Dispute Resolution Fund would receive revenues from 
persons charged with infractions and misdemeanors. Such monies 
would then be used to provide restitution or for the costs incurred 
by City departments responsible for public safety and the public's 
quality of life. Under the proposed draft ordinance, funds would be 
appropriated, subject to review by the Mayor's Criminal Justice 
Council and the Director of the Mayor's Office of Criminal Justice, 
without approval by the Board of Supervisors. The proposed 
legislation would also authorize the acceptance of all donations of 
gifts, grants or monies to this Fund. 

3. On December 10. 1998, Supervisor Yee requested that the Board 
of Supervisors Budget Analyst and the Controller's Office inquire 
into the financial practices of the CCDS. Based on the information 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Memo to Finance and Labor Committee 

February 17. 1999 Finance and Labor Committee Meeting 

provided as part of this report for this hearing, the Budget Analyst 
reports and the Controller's Office confirms that there is 
insufficient caseload and financial data maintained by the District 
Attorney's Office, the CCDS and the Police Department. Based on 
a preliminary review by the Controller's Office of the financial 
practices of the Police Department, the Police Department no 
longer accepts funds directly from arrested individuals made out to 
the Police Department. Rather, the CCDS now accepts checks 
made out to the City and County of San Francisco and deposits 
such checks directly into the City's General Fund account. Given 
the lack of data, the Budget Analyst and the Controller conclude 
that there was not adequate documentation of these prostitution- 
related cases referred by the District Attorney to the CCDS and 
there was insufficient data on the money received from these 
specific cases in order to adequately track the funds generated 
from this program. As reported above, since the Police Department 
did not maintain separate overtime records for the time spent on 
specific prostitution-related cases, the Budget Analyst cannot 
determine the percentage of the costs of operations that were 
recovered by the fees paid to the City. However, as noted above, 
there have been significant changes to the program, including (1) 
that these prostitution-related cases are no longer being referred to 
CCDS and (2) that the District Attorney currently contracts 
directly with SAGE to provide services, for which SAGE does not 
charge an administrative fee to their clients, as CCDS had done. 
Despite these improvements, the Budget Analyst and the 
Controller recommend that the affected City departments and 
contractors, including the District Attorney and the Police 
Department, develop and maintain adequate data bases and 
records to permit tracking and evaluation of their clients, fees and 
costs. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

February 17, 1999 Finance and Labor Committee Meeting 




cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 




City and County of£an Francisco 

Meeting Minutes 
^Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



ZS<+. 



Wednesday, february 24, 1999 



10:00 AM 



City Hall, Room 263 



Members Present: Leland Y. Yee, Tom Ammiano. 
^jaci Members Absent: Sue Bierman. 



DOOUMCNTO DCPT . 



Meeting Convened 

The meeting convened at 10:02 a.m. 

REGULAR AGENDA 



MAR 2 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 






990161 (Emergency Repair, 4th Avenue Sewer) 

Resolution approving expenditure of funds for the emergency work to replace the structurally inadequate 
sewer on 4th Avenue from Geary Boulevard to Balboa Street - $431,120.00. (Public Utilities Commission) 

(Fiscal impact.) 

1/29/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Andy Moran. General Manager, Public 
Utilities Commission; Supervisor Yee; Supervisor Ammiano. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

990162 [Emergency Repair, Duboce Avenue Sewer] 

Resolution approving expenditure of funds for the emergency work to replace the structurally inadequate 
sewer on Duboce Avenue from Elgin Park to Valencia Street - $1 19,720.00. (Public Utilities Comrrussion) 

1/29/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

990164 [Grant - State) 

Resolution authorizing the Mayor's Criminal Justice Council (MCJC) to accept and expend funds in the 
amount of $771,180 from the Office of Criminal Justice Planning (OCJP), State of California, to implement a 
coordinated Anti-Drug Abuse Enforcement Program. (Mayor) 

1/29/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Kimiko Burton, Executive Director, Mayor's 
Office of Criminal Justice. Amended on lines 2 and 19, after the word "to " insert the phrase "retroactiw fy 
apply for and to". 
AMENDED. 



City and County of San Francisco 



Printed at 6:06 P.\f on 2/2S/99 



Finance and Labor Committee Wetting \ttnutc\ February 24. 1999 

Resolution authorizing the Mayor's Criminal Justice Council (MCJC) to retroactively apply for and to accept 
and expend funds in the amount of $771,180 from the Office of Criminal Justice Planning (OCJP), State of 
California, to implement a coordinated Anti-Drug Abuse Enforcement Program. (Mayor) 

RECOMMENDED AS AMENDED by the following rate 
Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 

990136 (Appropriation, Mayor's Office of Criminal Justice] Supervisor Ammiano 

Ordinance appropriating $50,000 from the General Fund Reserve to support the Intergroup Clearinghouse- 
organization whose mission is to provide educational materials, capacity-building and other services for the 
prevention of hate violence, through the Mayor's Office of Criminal Justice for fiscal year 1998-1999. 

1/25/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Kimiko Burton. Executive Director, Ma. 
Office of Criminal Justice; Supervisor Ammiano. Jill Tregor. Intergroup Clearinghouse Hamid Kadir. St 
Charles Elementary School Students Daniel. Kimbcrh. Supervisor Yet 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

990192 |Court Employee Compensation! 

Ordinance setting schedules of compensation and other economic benefits for certain classifications of persons 
employed by the Superior Court of California, County of San Francisco (Superior Courts) 

SUBSTITUTED by Superior Court 2 9 99, bearing Dew title 
2/3/99, RECEIVED AND ASSK All) to Finance and Labor Committee 
2/9/99, SUBSTITUTED. Substituted by Superior Court 2 9 99, bearing new title. 
: 9 99, ASSIGNED to Finance and Labor Committee Scheduled foi 2 2 I 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Alan Carlson. Chief Executive Officer. 

Superior Court; Ted Lakey. Deputy City Attorney Amended on page I. line 2. replace the word "setting' H uh 

"implementing" 

AMENDED. 

Ordinance implementing schedules of compensation and other economic benefits for certain classifications of 

persons employed by the Superior Court of California. County of San Francisco. (Superior Courts) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 

990193 [MOU, Superior Court -ME A) 

Ordinance implementing the provisions of the Memorandum of Understanding between the Superior Court of 
California, County of San Francisco, and the Municipal Executives Association. (Superior Courts) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Harvey Rose. Budget Analyst; Alan Carlson. Chief Executive Office. 
Superior Court; Ted Lakey. Deputy Cm Attorney. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 



CityandCounty of San Francisco 2 Printed at 6:0' PM on 2/2V99 



Finance and Labor Committee 



Meeting Minutes 



February 24, 1999 



990194 [Court Employee Compensation] 

Ordinance implementing the schedules of compensation and other economic benefits for certain classifications 
of persons employed by the Superior Court of California, County of San Francisco. (Superior Courts) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alan Carlson, Chief Executive Office, 
Superior Court; Ted Lakey, Deputy City Attorney. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

990195 [Court Reporter Compensation] 

Ordinance implementing the schedules of compensation and other economic benefits for certain classifications 
of persons employed by the Superior Court of California, County of San Francisco. (Superior Courts) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alan Carlson, Chief Executive Office, 
Superior Court; Ted Lakey, City Attorney. Amendment of the Whole. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance implementing the economic benefits for certain classifications of persons employed by the Superior 
Court of California, County of San Francisco. (Superior Courts) 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 2 - Yee. Ammiano 
Absent: 1 - Bierman 

990197 [1999 Community College Bond Sale] 

Resolution amending Resolution 1027-97 that, among other matters, authorized and directed the sale of not to 
exceed $17,000,000 City and County of San Francisco General Obligation Bonds (Educational Facilities 
Bonds, 1997), Series 1998B; by changing the maximum dollar amount authorized and directed to be sold; and 
by extending the final maturity date for such Bonds (Mayor) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers- Harvey Rose, Budget Analyst; Supervisor Ammiano; Laura Opsahl, Mayor's 
Office of Finance; Peter Goldstein, Community College District; Supervisor Yee; Ted Lakey, Deputy City 
Attorney. Opposed - Aaron Pesken, Friends ofColumbo Building; Jeffrey Kaplan; Nancy Shanahan; Arthur- 
Chan. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 
990200 [ 1 999 School Bond Sale] 

Resolution amending Resolution 14^-98 that, among other matters, authorized and directed the sale of not to 
exceed $47,000,000 City and County of San Francisco General Obligation Bonds (Educaiional Facilities 
Bonds, 1997 - San Francisco Unified School District) Series 1998C, by changing the maximum dollar amount 
authorized and directed to be sold; and by extending the final maturity date for such Bonds. (Mayor) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; William Coleman, Chief Financial Officer, 
S.F. Unified School District.; Tim Tronson, Director of Management Operations, S.F Unified School District 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 6:0' PM on ITlSm 



Finance and Labor Committee 



Meeting Minutes 



Februun 24, 1999 



990201 |1999 Zoo Bond Sale| 

Resolution amending Resolution 678-98 that, among other matters, authorized and directed the sale of not to 
exceed $1 1,000,000 City and County of San Francisco General Obligation Bonds (Zoo Facilities Bonds, 
1997), Series 1998D; by changing the maximum dollar amount authorized and directed to be sold; and by 
extending the final maturity date for such Bonds. (Mayor) 

2/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Han ey Rose, Budget Analwt. John Aikm. Zoological Society. Supervisor 

Yee. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

982149 [Film Location Request | Supervisor Ammiano 

Hearing to consider the request submitted by Walt Disney Corporation to conduct film shoot at the Board of 
Supervisors Chambers during the last week of April or the second week of June 

12/21/98, RECEIVED AND ASSIGNED to Rules Committee. 

1/25/99, TRANSFERRED to Rules Committee New committee structure 

2/5/99, TRANSFERRED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Supers nor Ammiano Ron Enke. Production 
Manager, Walt Disney Pictures Tony lions ( it) Architect, Gloria Young. Clerk of the Board Ted Lakey. 
Deputy City Attorney. Laura Spanjam. Aide to Supenisor Katz 
FILED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 
990092 |Grand Jury Fees| Supervisor Kaufman 

Ordinance amending Administrative Code by amending Chapter 45 to increase the fees paid to grand jurors 
and delete obsolete provisions concerning payment of trial juror fees. 

(Amends Sections 45 1, 45.2; deletes Section 45 3 i 

1/19/99, ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst. Allison Krumhem. Aide to Super. 
Kaufman; ..Ian Carlson. Chief Executne Officer. Sup<. or Court. Supenisor Ammiano. Hilda Bernstein. 
Supen-isor Yee. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 

981935 (Parking Facility Leases and Management Agreements! Supervisor Newsom 

Ordinance amending Administrative Code Section 17.11 to require that all leases and management agreements 
for parking facilities be awarded through a competitive process and that such parking facility leases and 
management agreements be approved by the Board of Supervisors. 

(Amends Section 17.11.) 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Housing and Neighborhood Services Committee, expires 

on 12/16/1998. 

1/25/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supenisor Yee; Supenisor Ammiano. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 6.0" PM on 11S.V9 



Finance and Labor Committee Meeting Minutes February 24, 1999 

990091 [Interdepartmental Jurisdictional Transfer] Supervisor Bierman 

Ordinance transferring jurisdiction over certain real property located at Drumm Street, between Clay and 
Washington Streets, described generally as Assessor's Block 202, Lots 6, 14 and a portion of 15, excluding the 
subsurface thereof, and a portion of Assessor's Block 203, Lot 14, from the Department of Public Works to the 
Recreation and Park Commission; and providing that no building, improvement or structure may be 
constructed on the surfaces of such parcels and adjoining Assessor's Block 202, Lot 18. 

1/19/99, ASSIGNED to Finance and Labor Committee. 

2/10/99, CONTINUED. Heard in Committee. Speakers: Eula Walters. Continued to February 24, 1999. 

Continued to March 3, 1999. 
CONTINUED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 

ADJOURNMENT 

The meeting adjourned at 12:30 p.m. 






City and County of San Francisco 5 Printed at 6:0 7 PM on 2/25/99 



f 



CITY AND COUNTY 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



OF SAN FRANCISCO 



•_£AN 



jBOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



February 19, 1999 
TO: ^ Finance and Labor Committee 

FROM: .Budget Analyst 
SUBJECT: February 24, 1999 Finance and Labor Committee Meeting 

*' DOCUMENTS DEPT. 



Item 1 



File 99-0161 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 



FEB 2 3 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Resolution approving the expenditure of funds for 
emergency work to replace a structurally inadequate 
sewer located on 4 th Avenue from Geary Boulevard to 
Balboa Street. 

$431,120 

FY 1997-98 PUC Repair & Replacement Fund 

Mr. P.T. Law of the DPW advises that on March 27, 1998 
an examination by the PUC Operation Unit determined 
that the existing sewer located at 4 th Avenue from Geary 
to Balboa Street was in imminent danger of failure. 
Immediate replacement was required in order to protect 
the health, welfare, and property of the citizens of San 
Francisco. On March 30, 1998 the PUC declared the 
sewer replacement an emergency. According to Mr. Law, 
the sewer replacement cost was $431,120. 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Mr. Law advises that, in accordance with Section 6.30 of 
the Administrative Code, the PUC initiated expedited 
contract procedures on March 27, 1998, to acquire the 
necessary construction services. Mr. Law states that on 
April 9, 1998, the DPW awarded a contract in the amount 
of $366,670 to Vargas & Esquivel/K.J. Woods, the low 
bidder for the sewer repair work at the 4th Avenue 
location. The repair work consisted of replacing the 
existing 8-inch, 21-inch, and 24-inch diameter sewers 
with 652 linear feet of 12-inch, 51 linear feet of 24-inch, 
and 639 linear feet of 30-inch diameter vitrified clay pipe 
sewers. 

Budget: The total estimated project cost is $431,120, including 

$366,470 in actual construction costs and $64,650 for 
DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $366,470 

DPW Bureau of Engineering 37,650 

DPW Bureau of Construction Management 27,000 

Total $431,120 

Attachment I, provided by the DPW, contains further 
budget details to support this $431,120 budget. 
Attachment II, also provided by DPW, details the DPW 
Bureau of Engineering and Bureau of Construction costs. 



Comments: 1. Invitations for Proposals were faxed to 10 contractors 

on April 3, 1998. Two quotations were received by PUC 
from qualified contractors on April 7, 1998. PUC reports 
that Vargas & Esquivel/K.J. Woods submitted the lowest 
quotation and was awarded the contract in the amount of 
$366,120. 

Contractor Quotation 

Vargas & Esquivel/K.J. Woods $366,670 

JMB Construction Inc. $385,100 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



2. PUC reports that although the contract was awarded 
in the amount of $366,670, the final contract cost, after 
adjustment for actual quantities used during construction 
was $366,470 or S200 less than the contract amount of 
$366,670. 

3. PUC reports that the repair work at the damaged 
sewer commenced on April 15, 1998 and was completed on 
June 5, 1998. 

4. Mr. Law of the DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution approximately eight months after the 
construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau AGENDA NO 



MEETING DATE January 26, 1999 



SUMMARY OF PROPOSED ACTION: 

Ratifying the Declaration of Emergency made by the President of the Public Utilities Commission for 
Clean Water Contract No. CW-182E. "4* Avenue Emergency Sewer Replacement" and Requesting 
the Board of Supervisors to approve expenditure of funds for emergency work to replace the 
structurally inadequate sewer on 4 Ih Avenue from Geary Boulevard to Balboa Street. 



DESCRBTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of replacing the existing 8-inch, 2 1 -inch, and 24- 
inch diameter sewers with 652 linear feet of 1 2-inch, 52 linear feet of 24-inch, and 639 linear feet of 
3-inch diameter vitrified clay pipe (VCP) on crushed rock bedding; constructing 1 0-inch diameter VCP 
culverts; videotaping existing active side sewer; replacing damaged side sewers; removing existing 
sewers and manholes; videotaping the newly constructed main scw-cr; traffic routing and trench support 
work; pavement reconstruction, backfilling voids, and all related and incidental work on 4" Avenue 
from Geary Boulvard to Balboa Street. 



APPROVALS: 



DCMcrmcr/ 



BUH*»U '• UAHtGEP 



Attachment I 
Fage 2 ot 3 



Two (2) Quotations were received on April 7, 1998 as follows: 



Firm Quote Quote Adjusted Rank 
Amount Preference Amountf*) 

1. Vargas & Esquivel/KJ. Woods S366 307.00 10% 5330,003.00 1 
{LB&MBE/WBEyv 3^ CxPp^ 

San Francisco, CA 941 16 

2. JMB Construction Inc. $385,100.00 10% $346,590.00 2 
(LBE/WBE) 

San Francisco, C A 941 12 

(*) For comparison of quotes after application of business enterprise preferences. 
Work ii of lump sum and unit bid item type. 

The Engineer's Estimate for this contract was $300,000.00. The original contract was awarded to the 
Contractor, Vargas & Esquivcl/K.J. Woods for $366,670.00. The final contract cost after adjustment 
for actual quantities used during construction is $366,470.00. 

Therefore, the cost of this project is estimated to be $43 1 . 1 20.00: 

Bureau of Engineering (Planning, Design, and Construction Support) $37,650.00 

Bureau of Construction Management (Construction Inspection) $27,000.00 

Final Construction Contract Cost $366.470.00 

Total Project Cost 543 1 , 1 20.00 

This project is part of the Clean Water Program's Repair and Replacement Program. Funds are 
available from the Repair & Replacement Fund (Fund 5C/CPF/R&R, FAMIS Project No. 
CENRNRR969, Job Order No. 1599N). 

Af firmfltiy? A r ti™ 

Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Clean Water Repair and Replacement program. 

Vargas & Esquivel and KJ. Woods Construction (Joint Venture) began the work on April 15, 1998 
and completed it on June 5, 1998. 



CONTEXT OF THIS ACTION: 

In March 27, 1998, PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau 
of Engineering that the existing 8-inch, 21 -inch, and 24-inch diameter sewers on 4 th Avenue from 
Gcsay Boulevard to Balboa Street had collapsed sections. Sewer Operations further requested the 
Bureau of Engineering to prepare an Emergency Contract to replace this sewer. 



Page 3 of 3 
Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on March 30, 1998. The Declaration of Emergency 
has been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 

3. Resolution 

4. Draft Board of Supervisors Resolution 

Contact Person: Mr. Norman Chan 


Phone 554-8355 

M. Williams 
P. Law 




cc: B. Lixn C. Tang 

C. Jacobo F. Bongolan 


T.Won 
P. Scott 



AULacnmeii l ±± 



Cost Breakdown for ( J.O. #1599N, Contract #CW-182E) 
4th Ave Emergency Sewer Replacement 

Bureau of Engineering 



Classification 



Title 



Rate 



Hours 



Cost 



5504 


Project Manager II 


$ 


92 


18 


$ 


1,656 


5206 


Associate Civil Engineer 


$ 


75 


79 


$ 


5,925 


5202 


Junior Civil Engineer 


$ 


50 


180 


$ 


9.000 


5366 


Civil Engineering Associate II 


$ 


60 


246 


$ 


14,760 


5381 


Engineering Student Trainee II 


$ 


33 


70 


S 


2,310 


1426 


Secretary 


$ 


43 


93 


$ 


3.999 












$ 


37,650 










Rounded: 


$ 


37,650 



Bureau of Construction Management 



Ctass if cation 


Title 


• Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


$ 100 


16 


$ 


1,600 


5208 


Civil Engineer 


$ 80 


27 


$ 


2,160 


5204 


Assistant Civil Engineer 


$ 59 


202 


$ 


11,918 


6318 


Construction Inspector 


$ 74 


153 


$ 


1 1 ,322 



Rounded: $ 



27,000 
27,000 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Item 2 - File 99-0162 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for 
emergency work to replace a structurally inadequate 
sewer located on Duboce Avenue from Elgin Park to 
Valencia Street. 

$119,720 

1994 Sewer Revenue Bonds 

Mr. P.T. Law of the DPW advises that on June 24, 1998 
an examination by the PUC Operation Unit determined 
that the existing sewer located at Duboce Avenue from 
Elgin Park to Valencia Street was in imminent danger of 
failure. Immediate replacement was required in order to 
protect the health, welfare, and property of the citizens of 
San Francisco. On June 25, 1998 the PUC declared the 
sewer replacement an emergency. According to Mr. Law, 
the sewer replacement cost was $119,720. 

Mr. Law advises that, in accordance with Section 6.30 of 
the Administrative Code, the PUC initiated expedited 
contract procedures on June 24, 1998, to acquire the 
necessary construction services. Mr. Law states that on 
July 7, 1998, the DPW awarded a contract in the amount 
of $95,850 to Darcy and Harty Pipelines, Inc., the low 
bidder for the sewer repair work at the Duboce Avenue 
location. The repair work consisted of replacing the 
existing 3'x5' brick sewer and 16-inch diameter sewer 
with 218 linear feet of 18-inch diameter vitrified clay pipe 
sewer. 



Budget: 



The total estimated project cost is $119,720, including 
$99,070 in actual construction costs and $20,650 for DPW 
engineering and construction management costs. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

A summary of this budget is as follows: 



Comments: 



Construction contract $ 99,070 

DPW Bureau of Engineering 12.650 

DPW Bureau of Construction Management 8.000 

Total $119,720 

Attachment I, provided by the DPW, contains further 
budget details to support this $119,720 budget. 
Attachment II, also provided by DPW, details the DPW 
Bureau of Engineering and Bureau of Construction 
Management costs. 

1. Invitations for Proposals were faxed to 15 contractors 
on June 30, 1998. Two quotations were received by PUC 
from qualified contractors on July 2, 1998. PUC reports 
that Darcy and Harty Pipelines Inc. submitted the lowest 
quotation and was awarded the contract in the amount of 
$95,850. 

Contractor Quotation 

Darcy and Harty Pipelines Inc. $ 95,850 

Troy's Construction/Trinet $118,850 

2. PUC reports that although the contract was awarded 
in the amount of $95,850, the final contract cost, after 
adjustment for actual quantities used during construction 
and for repair to concrete slabs and sidewalk, was $99,070 
or $3,220 more than the contract amount of $95,850. 

3. PUC reports that the repair work at the damaged 
sewer commenced on July 7, 1998 and was completed on 
July 24. 1998. 

4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution 
approximately six and one half months after the 
construction work was completed. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



auuacnmenu 1 
Page 1 of 3 




AGENDA ITEM 



DEPARTMENT: Utilities Engineering Bureau AGENDA NO. 



MEETING DATE January 26, 1999 

SUMMARY OF PROPOSED ACTION: 

Ratifying the Declaration of Emergency made by the President of the Public Utilities Commission for Clean 
Water Program Contract No. CW-194E, "Duboce Avenue Emergency Sewer Replacement" and Requesting 
the Board of Supervisors to approve the expenditure of funds for the emergency work to replace the 
structurally inadequate sewer on Duboce Avenue from Elgin Park to Valencia Street. 

DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of replacing the existing 3'x5' brick sewer and 16-inch 
vitrified clay pipe (VCP) sewer with 218 linear feet of 18-inch VCP on crushed rock bedding; constructing 
concrete manholes; removal of existing sewers and sewer structures; videotaping the newly constructed main 
sewers; traffic routing and trench support work; and all related and incidental work on Duboce Avenue from 
Elgin Park to Valencia Street. 

Two (2) Quotations were received on July 2, 1998 as follows: 

Firm Quote Quote Adjusted Rank 
Amount Preference Amount(*) 

1. Darcy & Harty Construction 595,850.00 5% $91,057.50 1 
(LB£) 

San Francisco, CA 94124 

2. Troy's Construction/Trinet $118,850.00 10% $106,965.00 2 
(LBE/MBE) 

S*n Francisco, CA 94134 
(*) For comparison of quotes after application of business enterprise preferences. 



DEFAKTMEVTf 

BUK2AU 



BL'REAU 



COM W [SOON 
SECRET A*V 



10 



Attachment I 
Va?e 2 oi 3 
Work is of himp sum and unit bid item type. 

The Engineer's Estimate for this contract was S75.O0O.O0. The original construction contract was awarded 
to Darcy & Harty Construction Co. for $95,850.00. 

A change order in the amount of 53.220.00 was issued to repair concrete slabs and sidewalk, to fill the 
existing void with slurry grout, and for adjustment for actual quantities used during construction 

The final contract cost came to 599,070.00. 

As shown, the cost of this project is estimated to be 5 1 19,720 00: 

Bureau of Engineering (Planning, Design, and Construction Support) S 12,650.00 

Bureau of Construction Management (Construction Inspection) S 8.000.00 

Final Construction Contract Cost S 99.070 00 

Total Project Cost Estimate S 1 1 9,720.00 

This project is pan of the Clean Water Program's Repair and Replacement Program. Funds are available 
from the 1994 Sewer Bond Fund (Fund 5C7CPF/95A. FAM1S Project No. CENSR4SI41. Job Order No. 
1616N). 

Affirmative Action 

Because this was an emergency contract, HRC subcontracting goals were not established by the HRC 
Contract Compliance Officer assigned to monitor the Sewer Repair and Replacement program. 

Schedule 

Darcy & Harty Construction Co. began the work on July 7, 1998 and completed it on July 24, 1998. 



CONTEXT OP THIS ACTION: 

On June 24, 1998, PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 3'x5' brick sewer and 16-inch diameter sewer on the 100 block of Duboce 
Avenue from Elgin Park to Valencia Street had multiple cracks and were ready to collapse. Sewer Operations 
further requested the Bureau of Engineering jo prepare an Emergency Contract to replace this sewer. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on June 25, 1998. The Declaration of Emergency has been 
signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract. 



11 



Attachment I 
fage 3 of 3 
Attachments: 

1. Resolution 

2. Draft Board of Supervisors Resolution 



Contact Person: Mr. Norman Chan Phone: 554-8355 



P.T.Law M. Williams C. Tang B. Lim 

C. Jacobo F. Bongolan P. Cheng M. Wong 

P.Scott 



12 



Attachment II 



Cost Breakdown for ( J.O. #1616N, Contract #CW-194E) 
Duboce Ave Emergency Sewer Replacement 



Bureau of Engineering 



Classification 


"TrtS 




Rate 


M-.,.-:, 




Cost 


5504 


Project Manager II 


S 


92 


t 


$ 


552 


&206 


Assoaale Civil Engineer 


s 


75 


26 


$ 


1.950 


5202 


Junior CMrf Engineer 


$ 


50 


60 


S 


3,000 


5366 


Civil Engineering Associate II 


s 


60 


82 


$ 


4,920 


5381 


Engineering Student Trainee II 


s 


33 


31 


$ 


1,023 


1426 


Secretary 


1 


43 


28 


S 


1.204 












s 


12,649 










Rounded: 


s 


12,650 



Bureau of Construction Management 



ClasaHtcatiori 


Title 


Rate 


H urs 




Cost 


5210 
5206 
5204 
6318 


Senior Civil Engineer 

CMI Engineer 

Assistant Civil Engineer 

Construction Inspector 


$ 100 
S 80 
$ 59 

S 74 


5 
5 

60 
47 


S 
S 

s 
s 


500 

480 

3.540 

3.478 



Rounded: 



7,998 
8,000 



Past-tt* Fax Note 



7671 



ty<r?f) 3 



^4^/PdU^T 






13 



Memo to Finance and Labor Committee 
February 24, 1999 Finance Committee Meeting 



Item 3 - File 99-0164 

Department: 

Item: 



Grant Amount: 
Grant Period: 

Source of Funds: 

Project: 

Description: 



Budget: 



Mayor's Criminal Justice Council (MCJC) 

Resolution authorizing the MCJC to retroactively apply 
for, accept and expend funds in the amount of $771,180 
from the State's Office of Criminal Justice and Planning 
(OCJP), to implement the Anti-Drug Abuse Enforcement 
Program. 

$771,180 

July 1, 1998 through June 30, 1999 (one year). Funds are 
renewable for the following two fiscal years, based on 
Federal appropriations. 

State of California Office of Criminal Justice Planning 

Anti-Drug Abuse Enforcement Program 

The Board of Supervisors previously authorized the 
MCJC to develop an Anti-Drug Abuse Enforcement 
Program and stated that the Program would be developed 
in a collaborative manner (File No. 90-1187). 

The proposed drug abuse enforcement program was 
developed by the MCJC, the Police Department, the 
Sheriff, the District Attorney, the Public Defender, and 
the Adult and Juvenile Probation Departments. 

On December 8, 1998, the MCJC was awarded $771,180 
by the State's OCJP. This second resolution is required to 
authorize the MCJC to retroactively apply for, accept and 
expend these grant funds. The funds will be used to 
implement a comprehensive anti-drug abuse enforcement 
effort. 

These services will be available Citywide, but will focus 
on heroin use in the Tenderloin and Mission districts. 

A summary budget for the requested amount of $771,180 
for the 12-month period retroactive from July 1, 1998 
through June 30, 1999 is as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

H 



Memo tcfFinance and Labor Committee 
February 24, 1999 Finance Committee Meeting 

Personnel Costs 
District Attorney 
Police 
Sheriff 

Adult Probation 
Public Defender 
Juvenile Probation 
Total 

Fringe Benefits 
District Attorney (20.9%) 
Police (10.8%) 
Sheriff (18%) 
Adult Probation (18%) 
Public Defender (18%) 
Juvenile Probation (0%) 
Total 



Amount 

$238,180 

147,049 

51,000 

122,370 

39,707 

37.000 

$635,306 



$50,013 

15,904 

9,180 

22,026 

7,147 



$104,270 



Travel 

District Attorney 
Police 
Sheriff 

Adult Probation 
Public Defender 
Juvenile Probation 
Total 

Urinalysis Test 
Adult Probation 
Total 

TOTAL GRANT BUDGET 



$1,214 
1,630 
1,630 
1,630 
1,630 
1.630 

$9,364 



$22,240 
$22,240 

$771,180 



Required Match: 
Indirect Costs: 



Attachment I contains a detailed budget for this project. 
According to Ms. Kimiko Burton of the MCJC, the 
Juvenile Probation Department will be contracting out its 
portion of the work, therefore no fringe benefits were 
allocated for the Juvenile Probation Department. Also, 
the budgeted travel expenses are for mandatory trainings 
and conferences during the grant period. 

None. 

None. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



15 



Memo to Finance and Labor Committee 
February 24, 1999 Finance Committee Meeting 



Comments: 



Recommendation: 



1. Mr. Travis Kiyota of the MCJC explains that this 
proposed resolution is a retroactive authorization because 
the MCJC applied for the grant funds prior to obtaining 
the Board of Supervisors approval in order to meet the 
State OCJP's June 29, 1998 deadline. Ms. Burton reports 
that some of the expenditures are also retroactive to July 

1. 1998, since the program has already been implemented 
and expenses have been incurred, although the MCJC has 
not received the proposed authorization to accept and 
expend the funds from the Board of Supervisors, which is 
the subject of the proposed resolution. 

2. In the proposed budget, most of the personnel costs 
are for temporary salaries. However, under the proposed 
grant, two new full-time permanent positions would be 
created: one Assessor for Juvenile Probation and one 
Addiction Specialist for the Public Defender. 

3. Attachment II is a summary of the Grant Application 
Information Form as prepared by the MCJC. As shown in 
Question 11 of the Grant Application Information Form, 
the Juvenile Probation Department and the Office of the 
Public Defender intend to budget these two newly created 
positions for permanent ongoing funding after the grant 
period ends on June 30, 1999. The Budget Analyst 
recommends that the proposed resolution be amended to 
designate the two new positions as "L" or Limited-Tenure 
positions in order that these positions would expire with 
the termination of the grant. 

4. The MCJC has prepared a Disability Access Checklist 
for the proposed grant funds, which is on file with the 
Clerk of the Board of Supervisors. 

5. Although the proposed resolution would authorize the 
MCJC to retroactively apply for, accept and expend the 
proposed grant funds, the title of the proposed resolution 
does not include the retroactive apply for clause. The title 
of the proposed resolution should therefore be amended to 
include this retroactive apply for clause. 

1. Amend the title of this resolution to authorize the 
MCJC to retroactively apply for the proposed grant funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



16 



Memo to Finance and Labor Committee 
February 24, 1999 Finance Committee Meeting 



2. Amend the proposed resolution to designate the two 
new permanent positions be created under the grant as 
"L" or Limited-Tenure positions. 

3. Approve the proposed resolution as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



OrrlCE Or CRIMINAL JUSTICE PLANNING 



Attachment I 
Page 1 of 3 



BUDGET CATEGORY AND LINE-ITEM DETAIL 1997-19S8 

A.. ?ersonneI Services - Sal«ir>=s/E.mDiov=i Benefit Gucjuijg r----rur.-J.-L gr; position-; 



cos: 



SALARY 
r>isnric> Auurue 



Police 



xrrLE 



PHK1QI3 



S4.122.12 

S-i. 132.12 
Si.5C-S.y3 
S2.t)01.5J 
SI .533. £5 
S 2. = 92 23 



Sheriff 
Ad-Jl Probation Sr. Pn>b. 

Officer 

Sr. iToh. 

Officer 
r-ubiii; Defcuf.=r Atidiclius 

Spec. 

juv:~le rVot.itinn As%L-N>ur 



i-na. .Miy 
Pf.r.. /Uty 
ileal! Ally 

A"'.. luvcM 
Pohee 
Inspector 

Police c >racc.-N ( : WW bowrs f? S-J i liuur) 
(jimiosliM 52,J21.92 2f> 

l.'wicl SWaT? 2(. 

S2.001.7V 2fi 



2C, 
26 
26 
26 



S2.tlV1.85 
S 1.527 !«J 
Sl.-J23.OB 



2^ 
2(> 
26 



'Z. afllM B 

l.W 
i.00 

n.CT7 

cm 

0.20 
(1.2(1 

U.VH 

2.txi 
2-Ui 

0.25 

!.U1 

l.fKl 



Tu'.i:: 



TQT/1! 

5Jt77.4i5 
•Slt-,425 
$10.15(1 
55.2tti 

S I2.t"7f> 

S77.9T)0 
S5G.G73 
S5IJ0OO 

S1U8.773 



S3 5 .707 

SJ7.C XXI 

S635.24* 



rPUNCZ SF.N'EFTTS 



S63S,:Kx; 



pi-vartx-jsnt 


iTTi n 


3! -~'eiljii 


X' PaV 
PHK1U13 


■iofTlMr: 


-,•-.- 




District A.tic>rncy 


rrA: Ai:v 


MJ*7/M 


26 - 


1 .CXI 


S22.561 






J*rin A'.'.y 


JKf.7.73 


2fi 


l.«l 


S22_%1 






Henri Auv 


51 ISK.fX 


2b 


0C7 


S2.127 






iiivc^risjliir 


5-42H-W 


2^ 


0.10 


SI. 093 






A<M. Invert. 


5322.12 


26 


0.20 


S 1 .675 




Pulke 


Police 
Inspector 

Police Officer* 


S.551.73 


26 


0.2" 


S2.S6') . 








S 557.05 


26 


ll.Vll 


S 13.035 




Sheriff 


Cadel 


5P6.5-4 


2fi 


2.0 


sy.isti 




Adull "Tubftliiji; 


Sr. r-roh. 
Officer 


^37fi -u; 


20 


2.0 


S 19579 






Sr. Prub. 
Officer 


S.'.Si OS 


26 


0.25 


S2.J41 




P~.il>;!>: I iefundc: 


AdUiciiua 


S27-;.SS 


26 


l.W 


St U7 






i olni: 






. 


S104J170 


S104.270 



18 



f. (_ UUUllUltll L X 



ATTACHHZKT (Page 2 o* — t b-t- 

— v.c r _ - o_ j; Page 2 or 3 

BUDGET CATEGORY AND LINE-ITEM DETAIL 1997-19SX 




iiisrnci Aliurn.'y 

Pniice 

Shcrifl 

Adult FtuUhiu:; 

'lihjic Defeadrr 

.luveuDt Prnhaiion 



Total; 




l ravel :c OOP Ccafesna 
: rsvcl in OOP Coufe-esrs 
Iravel io COP Ctsifexsuce 
I r;v c | lit Orjl> Coufersuce 
1 ravel io CX"jp Coafsruse 
Travel iu Ot"J>* Conference 






ToliI: 



: 2 - 
SI. 630 

Si. 630 
S!.C3U 
Si .6 30 
•, -. j 
S9J64 



;t •■ ■ • ■ 



.522.330 



S9J64 



S;;.i4o 



: x 'J i •• -^nTTnUTT^y" 



19 



C. Eot 



bi ^getcXtecory x^Td line-item detailTw: 



3) 



Attachment I 
^age 3 of 3 



■1S»9S 



Of'Jt 





TOTAL p. 04 



20 



Attachment 
Page 1 of 2 



File Number: 



Grant Application Information Form 

A document required to accompany a proposed resolution 
Authorizing a Department to Accept &. Expend Grant Funds 



To: The Board of Supervisors 
Attn. Clerk of the Board 



The following describes the grant referred to in the accompanying resolution: 
1 . Department: Mayor's Criminal Justice Council (MCJC) 



2. Contact Person: Travis Kiyota Telephone: (415) 554-6165 

3. Project Title: Anti Drug Abuse Enforcement Program 

4. Grant Source Agency: Governor's Office of Criminal Justice Planning 

5. Type of Funds: Federal Federal-State (Pass-Through)XX State Local 

Private 

6. Proposed (New/Continuation) Grant Project Summary: 

The Governor's Office of Criminal Justice Planning is providing support to the City and 
County of San Francisco to support the implementation of the comprehensive anti-drug 
abuse program. The program has been developed by the Mayor's Criminal Justice 
Council, the Police Chief, Sheriff, District Attorney, the Chiefs of the Adult and Juvenile 
Probation Departments, and the Public Defender. 



7. Amount of Grant Funding Applied For: S771,180 



8. Maximum Funding Amount Available: S771,180 



9. Required Matching Funds? Yes: No:X /Cash or In-kind? 



If yes, list dollar amount and identify source of Matching Funds in Department Budget: 



21 



Attachment II 
Paee 2 ol 2 



10. Number of new positions created and funded: (1) Assessor for Juvenile Probation, (1) 
Addiction Specialist for the Public Defender. 

1 1. If new positions are created, explain the disposition of employees once the grant ends. 
Departments will budget for continuation funding for these positions. 



12. Are indirect costs eligible costs for this erant? Yes 



No: X 



If yes, please identify the amount of S in indirect costs. 
13. Amount to be spent on contractual services: SO 



14. a.) Will contractual services be put out to bid? NA 



,b). If so, will contract services help to further the goals of the department's 
MBE/WBE requirements? N/A 



15. Is this likely to be a one-time or ongoing request for contracting out? NA 

16. Term of Grant: Start-Date: 7/1/98 



End-Date: 6/30/99 



17. Date Department Notified of Available Funds: 12/8/98 
18. Grant Application Due Date: June 30, 1998 



19. Grant Funding Guidelines and Options (selected from RFP, grant announcement or 
appropriations legislation): Renewable for three years contingent on Federal/State 
appropriations. 



0. Department Head Approval: KIMIKO BURTON DIRECTOR, MCJC 

(Name) (Title) 



(Signature) 



22 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Item 4 - File 99-0136 



Department: 



Item: 



Amount: 
Source of Funds: 
Description: 



Human Rights Commission (HRC) 
Mayor's Criminal Justice Council (MCJC) 

Supplemental appropriation ordinance in the amount of 
$50,000 from the General Fund Reserve to support the 
Intergroup Clearinghouse, a non-profit organization, 
whose mission is to provide education materials, services 
and staff for the prevention of hate violence, through the 
Mayor's Criminal Justice Council. 

$50,000 

General Fund Reserve 

According to Mr. Don Hesse of the Human Rights 
Commission, the Intergroup Clearinghouse, a non-profit 
organization, was established in 1979 in an effort to 
address the tensions and conflicts which had arisen in the 
City at that time among various racial and cultural 
groups. 

Mr. Hesse states that the Intergroup Clearinghouse 
currently operates the three following anti-hate violence 
programs: (1) the Hate Violence Assistance and 
Prevention Network, (2) the Legal Committee and (3) the 
Bias Free Schools Project. According to Mr. Hesse, the 
Intergroup Clearinghouse has an existing two-year 
contract with the Human Rights Commission in the 
amount of $40,000 to provide anti-hate violence services 
under each of the three above-noted programs, for FY 
1997-98 and FY 1998-9, at $20,000 per fiscal year. 
According to Mr. Eugene Clendmen of the MCJC, the 
proposed $50,000 appropriation is for a second contract, 
resulting in two FY 1998-99 contracts totaling $70,000. 

Attachment I provided by Ms. Jill Tregor of the 
Intergroup Clearinghouse describes the anti-hate 
violence services provided by the Intergroup 
Clearinghouse for each program under the existing FY 
1998-99 $20,000 contract. Mr. Hesse states that the 
Human Rights Commission awarded the existing contract 
to the Intergroup Clearinghouse on a sole source basis 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



because, according to Mr. Hesse, the Intergroup 
Clearinghouse is the only organization in San Francisco 
whose primary mission is to provide assistance to victims 
of hate violence regardless of the motivating demographic 
characteristics. Mr. Hesse reports that the second, subject 
contract would also be awarded on a sole-source basis to 
the Intergroup Clearinghouse because the Clearinghouse 
continues to be the only organization of its kind in San 
Francisco. 

A comparison of the services provided by the Intergroup 
Clearinghouse under the existing $20,000 contract with 
the services to be provided under the proposed $50,000 
contract to augment existing services for a total amount of 
$70,000 is contained in Attachment II, provided by Ms. 
Tregor. 

The following is a summary of the additional anti-hate 
violence services to be provided by the Intergroup 
Clearinghouse under the subject contract: 

(1) Enhancement of the Hate Violence 
Prevention and Assistance Network 

According to Ms. Tregor of the Intergroup Clearinghouse, 
under the existing HRC contract the Intergroup 
Clearinghouse provides technical assistance to up to six 
community-based organizations. This technical assistance 
to community-based organizations consists of a 12-hour 
training program designed to give community-based 
organizations the ability to provide anti-hate violence 
assistance to their clients. Under the proposed contract, 
these services would be provided for up to an additional 
20 community-based organizations in FY 1998-99. 

(2) Support for One Additional Hate Violence 
Prevention Community Organizer 

Ms. Tregor states that under the current contract with 
HRC, the Intergroup Clearinghouse employs a .1 FTE 
community organizer to provide direct assistance to hate 
violence victims and to recruit community based 
organizations for anti-hate violence training. This subject 
request includes an additional .5 FTE community 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



organizer to support such recruitment and training 
activities. 

(3) Publication of an Annual Report on Hate 
Violence 

The Intergroup Clearinghouse would prepare an annual 
report on hate violence in the City, including information 
provided by the Police and community groups. The 
purpose of this annual report would be to inform the 
public of all available resources for the victims of hate 
violence. According to Ms. Tregor, presently such an 
annual report is not prepared. 

(4) Publication of Literature on Available 
Resources for the Victims of Hate Violence 

Currently, the Intergroup Clearinghouse publishes and 
distributes brochures printed in Spanish, Chinese and 
English, and distributes wallet cards printed in English 
and Spanish, providing information about available 
resources to the victims of hate violence. According to Ms. 
Tregor, these brochures and wallet cards presently 
require updating and such information would be 
distributed to various City agencies, community based 
organizations and individuals. 

(5) Creation of a Multilingual Voicemail System 

Ms. Tregor reports that the Intergroup Clearinghouse 
currently maintains a voicemail system which answers in 
English only. Ms. Tregor further states that this English 
only voicemail system is a barrier to persons who cannot 
speak English or have limited English speaking skills. 
This request would fund (1) an enhancement to the 
voicemail system to include Cantonese and Spanish 
voicemail messages and (2) a contract between the 
Intergroup Clearinghouse and the Northern California 
Coalition for Immigrant Rights (NCCIR) Immigrant 
Assistance Line for NCCIR to provide translation services 
to persons who call the voicemail system and leave 
messages on the proposed Cantonese and Spanish lines. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

25 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Budget: 



Comment: 



Recommendation: 



Attachment III, provided by Ms. Tregor, is a letter to the 
Board of Supervisors which describes each of the above 
programs in further detail. 

Attachment IV, also provided by Intergroup 
Clearinghouse, contains the budget details to support the 
$20,000 existing contract in FY 1998-99 with HRC, and 
the budget details for the subject request of $50,000 
resulting in two contracts totaling $70,000. 

The proposed legislation designates MCJC as the contract 
administrator for the additional $50,000 contract. Mr. 
Clendinen reports that MCJC has not yet negotiated a 
final contract with the Intergroup Clearinghouse. Mr. 
Clendinen advises that the information regarding the 
Intergroup Clearinghouse's proposed budget and program 
objectives provided in the Attachments by Ms. Tregor 
would be subject to modification during the contract 
negotiations. 

Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

26 



Attachment 






The main projects of Intergroup: 

• The Hate Violence Assistance and Prevention Network was formed to address the needs of 
community based agencies that Intergroup has trained tcrtak'e reports and provide assistance to 
victims of hate violence. In the past two years we have trained thirty community based 
organizations that provide services to populations that are particularly at-risk for hate violence. 
By working with organizations that are well regarded within their own communities we also 
address the needs of the larger communities that are affected whenever an individual act of 
hatred occurs. . • . • ■ '• 

• The Legal Committee meets regularly with the Police Department and the District 
Attorney's office to ensure that procedures for hate violence incidents and victims are handled 
sensitively and that cases are investigated and prosecuted aggressively. Members of the " ' 
committee helped the Police Department establish its Hate Crimes Unit, and worked with the ■ 
District Attorney's office to have someone specifically designated to work on hate crimes and to 
provide training to the Misdemeanor' Crimes Unit. We v successfully worked .with the Chair of 
the -State Senate's Subcommittee on Hate Violence t& develop legislation that closed an 
important loophole in state hate crimes laws. We work with private law firms to provide pro 
bono legal assistance for victims of hate violence who' want to pursue civil remedies. 

• - The Bias Free Schools Project was formed in recognition of the importance of working 
with youth. Early education is likely the only real way to intervene and prevent the possibility of 
_ youth growing into adult perpetrators, and to protect youth who are at risk of hate violence 
themselves. We worked with the San Francisco Unified School District to develop' a procedure 
for reporting incidents. The policy was the first qf its type in the country. 

Intergroup's "Bias Free School Plan" brings the whole school together to address bigotry on 
campus. Principals, teachers, parents, staff and students work to cross cultural and other barriers 
in order to identify and respond to hate at school. "Through the development of school based 
"Human Relations Committees," each school is guided through the process of developing a plan 
to address bias on campus. We provide free training and technical assistance to teachers, 
, students, administrators, parents, and staff who are interested in learning about conflict 
resolution, cultural awareness, gender, race, and other issues that affect our schools. 



27 



16:21 



SM15 243 6626 



COAX IHHGRNT P.TS 



Id 002/002. 

Attachment II 



S20,000 I $70,000 


Assistance to 10 Vi. dms of Kate 
Motivated Violenc: 


Assistance to 35 Victims of Hate 
Motivated Violence 


Technical 

Assistance/Trainir;: /Presentations to 4-6 

Community Organizations 


Technical 

Assistance/Training/Presentations to 15- 
20 Community Organizations 


Technical Assistan >, curricula, planning 
for two SFUSD sch -ols re hate violence 


Technical Assistance, curricula, planning 
for six SFUSD schools re hate violence 


Technical assistance and intervention 
strategies in at leaf, two incidents 
involving inter cc tmunity tensions. 


Technical assistance and intervention 
strategies in at least four incidents 
involving inter community tensions. 




Work with community groups in at least 
two targeted neighborhoods— 
Bayview/ Hunter's Foint and Vis. Valley 
to develop community responses to inter 
group tensions and hate violence 


Advocate and edu. ite dry institutions to 
ensure access for I .ite violence victims 


Advocate and educate city institutions to 
ensure access for hate violence victims 




Increase membership in Hate Violence 
Prevention and Assistance Network by 
20%. 


Create and coordi: ite a Hate Violence 
Prevention and Assistance Network 


Hold meetings of the Hate Violence 
Network at least quarterly. Provide 
update trainings to member agencies. 




Publish an annual report on Hate 
Violence in San Francisco 




Update, print and distribute wallet cards 
and brochures to fifty San Francisco sites. 




Expand voice mail system to enable 
Chinese and Spanish language hate 
violence victims 




Contract with NCCiR to provide on-site 
translations for Spanish and Chinese 
language victims of hate violence. 



28 



w 




Attachment 
Page 1 of 2 



iNTERGROUPJk . 

: ' "^^pLEARINGHOUSE 



M e mora ndum 



To: Honorable Tom Ammiano, President 

Board of Supervisors 
Fax: 554-6255 ■ 

Rebecca Prozan 
. . ' Office of the Mayor ■ 

Fax: 554-6148 

From: Jill R. Tregor, Executive Director 

Date: December 31,1998 

RE: ■ Request for City Funds 




Intergroup Clearinghouse requests $50,000 in City support of our unique community efforts. 
Intergroup Clearinghouse is the only organization in San Francisco whose primary mission is to 
provide assistance to victims of hate violence regardless of the motivating demographic or 
personal characteristics. Intergroup Clearinghouse works on behalf of all victims to develop 
necessary services, identify and address gaps in laws and public policy, and to advocate publicly 
on behalf of victims of hate motivated violence. Intergroup Clearinghouse (IC) is a 501(c)(3) that 
represents a wide range of communities which have come together to address their common 
problems-the crisis of hate motivated violence and the complex underlying issues that cause 
inter-community tensions. 

We are asking for $50,000 to'support the following efforts: 

• Build the Hate Violence Prevention and Assistance Network. Reaching out to new 
^organizations and providing technical assistance to those we have already connected with is 

vitally necessary. State Propositions 187 and 209 highlighted the need to provide assistance and 
training to the growing numbers of irnmigrants, refugees, and people of color who are being 
targeted in'the climate of hate rhetoric and behavior. There is no other organization ready to 
provide this service. ■ 

• Suyport a Community Organizer. The City's increased support will allow Intergroup 
Clearinghouse to pay for staff community organizing to help -stimulate the growth of services for 
hate violence survivors in communities where nothing presently exists; to recruit and train new 
community based reporting/ assistance agencies; and to respond more rapidly to incidents and 
trends as they occur. 

995 Market St., Smite 1219 «• San FRANCISCO, CA 94103 ♦ 415.896.1355 ♦ 415.243.8628 fax ♦ E-Mail: Sio P HatreJ@»ol.com 

29 



Attachment III 
Page 2 of 2 

Publish an Annual Report on Hate Violence. We are poised for 1999 to be the year that we 
are able to discuss hate violence in S.F. both qualitatively and quantitatively. San Francisco can 
become amongst the first cities in the nation to issue a comprehensive overview of hate 
violence, detailing information from the police, community groups, and other sources of the 
extent of the problem and informing the community of available resources.. 

• . Materials for Victims. We are iri need of funds to update and distribute our brochure and ' ' 
wallet cards, which axe printed in several languages and which provide information for victims 
about resources for them. The wallet card/which we originally printed in both Spanish and 
English, has been our most popular resource material, but now needs to be updated. It is 
distributed to schools, libraries, the Mayor's neighborhood offices, and community centers. The 
brochure was originally produced in Spanish, Chinese, and English and also requires updating.- It 
will be distributed to community organizations, city agencies, and other locations. 

• Make our voice mail system multilingual. Our voicemail system, presently only in English, 
is a barrier to victims who either do not speak English or have limited English speaking skills. 
We would like to expand the voice mail so that the message can be heard in Cantonese and 
Spanish as well. Wewould then contract by the hour with translators from the Coalition for 
Immigrant Rights Immigrant Assistance Line to provide language appropriate services to 
individuals who leave messages on the Cantonese and Spanish lines. ' i 



30 



Attachment IV 



Budget for Fiscal Year 98/99 

Intergroup Clearinghouse Contract with S.F. Human Rights Commission 

520,000 



Personnel 




12S2J 


Executive Director (12 mos. x 15% @ 41,500 FTE) 


6225 




Outreach/Community Organizer (12 mos. x 20% @ 16,500 3 FTE) 


6600 




Fringe (Health/Dental/Life/worker's cx>mp/SUl/FICA) 




4072 


Prcgrajn Supplies 




180 


Rent/ Overhead 




1125 


Phone 




495 


Postage 




90 


Insurance 




237 


Equipment 




375 


Printing 




76 


Staff Training 




93 


Accounting 




432 






TOTAL 20,000 



^- ; Requested Addition 

. Budget $50,000 

Personnel ■ ^ 26,875 

Executive. Director (6 mos. x 50% @ 41,500 FTE) 10375 

Outreach/Community Organizer (6 mos. x 100% @ 33,000 FTE) 16500 

Fringe (at 22%) . ' • 5 ' 913 



Program Supplies 



450 



Rent/ Overhead 4050 

1238 

225 

'. ' 142S 



Phone 
Postage 

Insurance • . . • 

Equipment " , '°° v 

2 Monthly MUNI bus' passes ■ ~~ 

Revision and reprint of brochure (3 languages) . o,uuu 

Revision and reprint of wallet card (2 languages) .>,000 

Installation of voice mail response system in 3 languages . 

and Translation Consultants with NCCTR 



?4f 



TOTAL . 50,000 
v '■ 



31 



Memo to Finance and Labor Committee 

February 24. 1999 Finance and Labor Committee Meeting 

Item 5 - File 99-0192 



Department: 
Item: 

Source of Funds: 



Description: 



Superior Court 

Ordinance implementing schedules of compensation and 
other economic benefits for FY 1998-99 for certain 
classifications of employees of -the Superior Court. 

State Trial Court Agency Fund 

The City will not be liable for any costs incurred in providing 
the wages or other benefits set forth in the ordinance since 
such cost have been assumed by the State. The City 
continues to have the responsibility for administering health 
and retirement benefits and payroll processing. 

The proposed ordinance would fix compensation and other 
economic benefits for 15 classifications, covering a total of 25 
employees in the Superior Court for the one-year period 
retroactive from July 1, 1998 through June 30, 1999. The 
proposed ordinance, which relates to employees who are not 
represented by an employee organization, would be adopted 
pursuant to California Government Code Section 69900, and 
would establish economic conditions of employment and the 
methods of employee compensation. 

The Superior Court employees covered by the proposed 
ordinance are as follows: 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Classification Current No. of Positions 

210 Clerk - Administrator 1 

215 Bail Commissioner 1 

220 Chief Deputy 2 

221 Executive Assistant 1 

222 Training Officer 1 
225 Calendar Coordinator 1 
230 Division Chief 3 
240 Court Program Analyst Manager 1 
242 Court Computer System Director 1 
255 Court Commissioner 3 

270 Assistant Division Chief 6 

271 Drug Court Coordinator 1 
275 Assistant Fiscal Officer 1 
595 Fiscal Systems and Services Coordinator 1 
650 Traffic Hearing Officer 1 

Total 25 

The major fiscal provisions regarding the above 15 
classifications covering a total of 25 positions in the Superior 
Court are as follows: 

Supervisory Differential Adjustment 

Employees in all the classifications listed above, except Class 
215 Bail Commissioner and Class 255 Court Commissioner, 
would continue to be eligible to request a "supervisory 
differential adjustment" if (1) they regularly supervise the 
technical content of one or more of their subordinate's work, 
and (2) their salary rate range is less than 5 percent over 
that of the employee being supervised. Application of the 
supervisory differential adjustment would be made at the 
discretion of the Chief Executive Officer of the Superior 
Court. The amount of such adjustment could not exceed 5 
percent of the salary of the employee supervised, or 10 
percent of the supervisors current basic compensation. 

Wage Increases 

Wages of the employee classifications listed above would 

receive a 3 percent salary increase effective October 1, 1998, 

except for Classes 215 Bail Commissioner and 255 Court 

Commissioner. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Classes 215 Bail Commissioner and 255 Court Commissioner 
would not receive a wage increase, because their salaries are 
tied to those of Superior Court judges, who received a salary 
increase effective July 1, 1998, according to Ms. Cheryl 
Martin of the Superior Court. 

Pav for Performance 

Due to the consolidation of the Trial Courts during FY 1998- 
99, the Superior Court is unprepared at this time to institute 
a Pay for Performance Program. In lieu of such a program 
and in addition to the above noted wage increases, MEA 
employees would receive an additional one time only bonus 
equal to 1.5 percent of total salary earned from July 1, 1997 
through June 30, 1998. MEA employees must simply be 
employees of the Superior Court on October 1, 1998 in order 
to receive this additional payment. Currently, the Superior 
Court does not provide for such a bonus. 

Bilingual Pav 

Employees in positions designated as a "Bilingual Positions" 
would continue to receive an additional compensation of $50 
on a bi-weekly basis. 

Health and Dental Care Benefits 

The City, on behalf of the Court, would continue to contribute 
to covered employee health benefits at a level set annually in 
accordance with the requirements of Charter Appendix 
Sections A8.423 and A8.428. The current level of health care 
benefits, $2,047.00 per employee on a yearly basis, will be 
maintained through FY 1998-99. 

Emploj-ees would, in addition, continue to receive $225.00 
per month toward dependent health care benefits, retroactive 
to July 1, 1998, and continuing for the duration of FY 1998- 
99. 

Employees would continue to receive the level of dental 
coverage for each member and family dependent provided in 
FY 1997-98, which is $887.00 per employee on a yearly basis. 

Retirement Pick-Up 

For the period July 1, 1998 through June 30, 1999, the City, 

on behalf of the Superior Court, would continue to "pick-up" 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

34 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



the full employees' share of retirement contributions to the 
Employee Retirement System in the following percentages: 

8 percent of salary for Tier I members (employees 
hired prior to November 1976); and 

7.5 percent of salary for Tier II members (employees 
hired after November 1976). 

State Disability Insurance 

Upon a vote of at least 50 percent plus one of the employees 
of a covered classification in support of being enrolled in the 
State Disability Insurance (SDI) Program at the employee's 
cost, the Chief Executive Officer of the Superior Court would 
continue to take all necessary actions to enroll such 
employees in the SDI Program. The cost of the SDI Program 
would be paid by the employee through payroll deduction at 
a rate established by the State of California Employment 
Development Department. 

Floating Holidays 

Effective July 1, 1998 through June 30, 1999, employees of 
the classifications noted above, except for Classes 215 Bail 
Commissioner and 255 Court Commissioner, would continue 
to receive four floating holidays 

Executive/Administrative Leave 

Each full-time employee in the positions of 210 Clerk- 
Admimstrator, 220 Chief Deputy. 221 Executive Assistant, 
222 Training Officer. 225 Calendar Coordinator, 230 Division 
Chief and 242 Court Computer System Director would 
continue to receive five days of executive leave per year. 
Executive leave for these employees may not cashed out, but 
up to five days of unused leave can be carried over into 
subsequent years. The other positions covered by this 
ordinance would continue to receive administrative leave 
earned on a straight time basis for hours worked in excess of 
40 hours per week. In no case would these employees be 
allowed to accrue more than 80 hours of administrative leave 
annually or maintain balances of more than 120 hours of 
administrative leave at any point in time. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Fiscal Impact of Proposed Ordinance 

As of the writing of this report, the Controller's Office has not 
completed an analysis of the estimated cost of this ordinance. 
A report from the Controller on this matter will be submitted 
prior to the February 24, 1999 meeting of the Finance and 
Labor Committee. 

Comment: According to Mr. Darren Lee of the City Attorney's Office, the 

proposed ordinance has been submitted over eight months 
after the effective approval dates of July 1, 1998, because the 
City Attorney's Office required additional time to study the 
implications of State Trial Court Funding and its impact on 
this ordinance, as this is the first full fiscal year of that 
funding. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

36 



Memo to Finance and Labor Committee 

February 14, 1999 Finance and Labor Committee Meeting 

Item 6 - File 99-0193 



Department: 
Item: 



Superior Court 

Ordinance implementing the provisions of a 
Memorandum of Understanding (MOU) between the 
Municipal Executive Association (MEA) and the Superior 
Court for the period July 1, 1998 through September 30, 
1999. 



Source of Funds: 



Description: 



State Trial Court Agency Fund 

With the exception of one position under Class 588 Court 
Coordinator, the City will not be liable for any costs 
incurred in providing the wages or other benefits set forth 
in the MOU since such costs have been assumed b3 r the 
State. The City continues to have the responsibility for 
administering health and retirement benefits and payroll 
processing. 

The proposed ordinance would implement the provisions 
of a MOU between the Municipal Executive Association 
(MEA) and the Superior Court for the 15 month period 
retroactive from July 1, 1998 through September 30, 
1999. 



The subject MOU is for the following 13 classifications, 
covering a total of 40 employees. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

37 



Memo to Finance and Labor Committee 

February 14, 1999 Finance and Labor Committee Meeting 



Classifications Current No. of Positions 

555 Chief Executive Officer 1 

584 Assistant Executive Officer 1 

585 Manager of Budget and Administration 1 
588 Court Coordinator 19 
590 Senior Court Assistant 3 
622 Deputy Jury Commissioner 1 
634 Manager of Court Operations 3 
636 Division Chief 6 
640 Director, FCS 1 

646 Assistant Director Probate 1 

647 Director, Probate 1 
657 Mental Heath Coordinator 1 
677 Judicial Secretary Coordinator 1 

Total 1" 

According to Ms. Cheryl Martin of the Superior Court, 
employees of all of the classifications noted above were 
previously not represented by an employee organization. 
As such, their compensation and benefits packages were 
determined by the Annual Salary Ordinance approved by 
the Board of Supervisors. 

The major fiscal provisions of the proposed ordinance 
apply to all employee classifications except Class 620 
Court Commissioner. These fiscal provisions are 
summarized as follows: 

Wage Increases 

Wages for the MEA employees in all of the above noted 
classifications would receive a 3 percent salary increase 
effective October 1, 1998. 

Pav for Performance 

Due to the consolidation of the Trial Courts during FY 
1998-99, the Superior Court is unprepared at this time to 
institute a Pay for Performance Program. In lieu of such 
a program and in addition to the above noted wage 
increases, MEA employees would receive an additional 
one time only bonus equal to 1.5 percent of total salary 
earned from July 1, 1997 through June 30, 1998. MEA 
employees must simply be employees of the Superior 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

38 



Memo to Finance and Labor Committee 

February 14, 1999 Finance and Labor Committee Meeting 



Court on October 1, 1998 in order to receive this 
additional payment. Currently, the Superior Court does 
not provide for such a bonus. 

Supervisory Differential Adjustment 

MEA employees would continue to be eligible to request a 
"supervisory differential adjustment" if (1) they regularly 
supervise the technical content of one or more of their 
subordinate's work, and (2) their salary range is less than 
5 percent over that of the employee being supervised. 
Application of the supervisory differential adjustment 
would be made at the discretion of the Chief Executive 
Officer of the Superior Court. The amount of such 
adjustment could not exceed 5 percent of the salary of the 
employee supervised, or 10 percent of the supervisor's 
current basic compensation. 

Executive/Administrative Leave 

MEA employees in the classifications of 550 Chief 
Executive Officer, 583 Assistant County Clerk, 584 
Assistant Executive Officer, 585 Manager of Budget and 
Administration would continue to receive five days of 
executive leave per year. Executive leave for these 
employees may not cashed out or carried over into 
subsequent years. The remaining above-noted MEA 
employees would continue to receive administrative leave 
earned on a straight time basis for hours worked in excess 
of 40 hours per week. In no case would these employees 
be allowed to accrue more than 80 hours of administrative 
leave annually or maintain balances of more than 120 
hours of administrative leave at any point in time. 

State Disability Insurance 

Upon a vote of at least 50 percent plus one of the 
employees of a covered classification in support of being 
enrolled in the State Disability Insurance (SDI) Program 
at the employee's cost, the Chief Executive Officer of the 
Superior Court would continue to take any necessary 
actions to enroll such employees in the SDI Program. The 
cost of the SDI Program would be paid by the employee 
through payroll deduction at a rate established by the 
State of California Employment Development 
Department. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

39 



Memo to Finance and Labor Committee 

February 14, 1999 Finance and Labor Committee Meeting 

Health Care Benefits 

For the period October 1, 1998 through June 30, 1999, the 
City, on behalf of the Super Court, would continue to 
contribute $225 per month for employees' representation 
in the Management Compensation Package. The 
elements of this package include dependent health care, 
disability insurance, term life insurance and accident 
insurance. 

Retirement Pick-Up 

For the period July 1, 1998 through June 30, 1999, the 
City, on behalf of the Superior Court, would continue to 
"pick-up" the full employees' share of retirement 
contributions to the Employee Retirement System (ERS) 
and the Public Employee Retirement System (PERS) in 
the following percentages: 

8 percent of salary for ERS Tier I members 
(employees hired prior to November 1976); and 

7.5 percent of salary for ERS Tier II members 
(employees hired after November 1976). 

5 percent of salary for PERS miscellaneous 
members 

8 percent of salary for PERS Public Safety 
members (employees hired prior to 1978): and 

7.5 percent of salary for PERS Public Safety 
members (employees hired after 1978) 

Fiscal Impact of MOU 

As of the writing of this report, the Controller's Office has 
not completed an analysis of the estimated cost of this 
ordinance. A report from the Controller on this matter 
will be submitted prior to the February 24, 1999 meeting 
of the Finance and Labor Committee. 

Comment: According to Mr. Darren Lee of the City Attorney's Office, 

the proposed ordinance has been submitted over eight 
months after the effective approval dates of July 1, 1998, 
because the City Attorney's Office required additional 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance and Labor Committee 

February 14, 1999 Finance and Labor Committee Meeting 

time to study the implications of State Trial Court 
Funding and its impact on this ordinance, as this is the 
first full fiscal year of that funding. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

41 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Item 7 - File 99-0194 

Department: 

Item: 



Superior Court 

Ordinance implementing schedules of compensation and 
other economic benefits for FY 1998-99 for certain 
classifications of employees of the Superior Court. 



Source of Funds: State Trial Court Agency Fund 

With the exception of two positions, one in Class 260 Legal 
Advisor and one in Class 676 Research Assistant, the City 
will not be liable for any costs incurred in providing the 
wages or other benefits set forth in the ordinance since such 
costs have been assumed by the State. The City continues to 
have the responsibility for administering health and 
retirement benefits and payroll processing. 

Description: The proposed ordinance would fix compensation and other 

economic benefits for 20 classifications, covering a total of 59 
employees of the Superior Court for the one-year period 
retroactive from July 1, 1998 through June 30, 1999. The 
proposed ordinance, which relates to employees who are not 
represented by an employee organization, would be adopted 
pursuant to California Government Code Section 69900, and 
would establish economic conditions of employment and the 
methods of employee compensation. 

The proposed ordinance includes the following provisions for 
all employees in all 20 classifications. 

Supervisory Differential Adjustment 

Employees would continue to be eligible to request a 
"supervisory differential adjustment" if (1) they regularly 
supervise the technical content of one or more of their 
subordinate's work, and (2) their salary rate range is less 
than 5 percent over that of the employee being supervised. 
Application of the supervisory differential adjustment would 
be made at the discretion of the Chief Executive Officer of the 
Superior Court. The amount of such adjustment could not 
exceed 5 percent of the salary of the employee supervised, or 
10 percent of the supervisors current basic compensation. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Health and Dental Care Benefits 

The City, on behalf of the Court, will continue to contribute 
to covered employee health benefits at a level set annually in 
accordance with the requirements of Charter Appendix 
Sections A8.423 and A8.428. The current level of health care 
benefits, $2,047.00 per employee on a yearly basis, will be 
maintained through FY 1998-99. 

Employees would, in addition, continue to receive $225.00 
per month toward dependent health care benefits, retroactive 
to July 1, 1998, and continuing for the duration of FY 1998- 
99. 

Employees would continue to receive the level of dental 
coverage for each member and family dependent provided in 
FY 1997-98, which is $887.00 per employee on a yearly basis. 

The major fiscal provisions of the proposed ordinance are 
summarized for each group of classifications as follows: 

Legal Positions 

The Superior Court positions covered by the provisions 
related to this group of classifications are: 

Classification Current No. of Positions 

174 Staff Attorney 5 

175 Senior Criminal Research Attorney 2 
260 Legal Advisor 3 
360 Legal Research Attorney 2 
676 Research Assistant 12 

Total 24 

The proposed ordinance includes the following provision for 
the above-noted positions. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

A3 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Wage Increases 

Wages of the employee classifications listed above would 
receive a 2 percent salary increase on July 1, 1998, and an 
additional 1.5 percent increase on December 26, 1998. 

The proposed ordinance also includes the following 
provisions for the above-noted positions with the exception of 
the Class 676 Research Assistant. 

Administrative Leave 

Each full-time employee in the above noted classifications 
would continue to receive five days of administrative leave 
per year. These employees would not be eligible to receive 
compensatory time off. 

Bar Dues 

Each full-time employee, who has worked for the Superior 
Court for more than one year as of January 15, 1999, would 
be reimbursed for the full amount of the annual California 
State Bar dues, which are currently $250 per year. The $250 
represents an increase of $173 from the $77 amount provided 
for in FY 1997-98. 

Flexible Benefit Allowance 

Effective July 1, 1998, the City, on behalf of the Superior 
Court, would continue, at the employee's option, either to 
contribute $225 per month to each employee participating in 
the City's 125 Cafeteria Plan or to pay $210 per month to 
each employee who elects to receive a direct payment for 
individual benefit options. 

Life Insurance 

The City, on behalf of the Superior Court, would continue to 
provide life insurance in the amount of $125,000 to each 
employee or make such life insurance available to each 
employee through the City's 125 Cafeteria Plan. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Retirement Pick-Up 

For the period July 1, 1998 through June 30, 1999, the City, 
on behalf of the Superior Court, would continue to "pick-up" 
the full employees' share of retirement contributions to the 
Employee Retirement System in the following percentages: 

8 percent of salary for Tier I members (employees 
hired prior to November 1976); and 

7.5 percent of salary for Tier II members (employees 
hired after November 1976). 

Merit Pav 

In addition to the wage increases set forth above, employees, 
in Step 4 of Class 174, Staff Attorney and Class 175 Senior 
Criminal Research Attorney with one year of experience at 
Step 4, would continue to be eligible for an additional wage 
increase of 2.5 percent above the maximum Step 4 Rate. 
This 2.5 percent wage increase would be granted annually 
based upon consideration of length of service and 
outstanding performance as determined by the Chief 
Executive Officer of the Superior Court. 

Management Information Positions 

The Superior Court positions covered by the provisions 
related to this group of classifications are as follows: 

Classification Current No. of Positions 

243 Traffic System Programmer 2 

244 Court Traffic Senior Application 

Programmer 1 

246 Court Application Programmer 1 

248 Court Technical Writer 2 

273 Assistant System Coordinator 1 

278 Assistant System Manager 1 

811 MIS Specialist I 2 

818 MIS Specialist II 1 

819 MIS Specialist III 4 
821 Computer Coordinator 1 

Total 16 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

45 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



The proposed ordinance includes the following provisions for 
the above-noted positions. 

Wage Increases 

Wages of the employee classifications listed above would 
receive a 2 percent salary increase on July 1, 1998, and an 
additional 1.5 percent increase on December 26, 1998. 

Compensatory Time Off 

Employees in the above-noted classifications would continue 
to receive compensatory time off for hours worked in excess 
of 40 hours per week. Compensatory time off would be 
earned at a rate of time and one-half. 

Retirement Pick-Up 

For the period July 1, 1998 through June 30, 1999, the City, 
on behalf of the Superior Court, would continue to "pick-up" 
the full employees' share of retirement contributions to the 
Employee Retirement System in the following percentages: 

8 percent of salary for Tier I members (employees 
hired prior to November 1976); and 

7.5 percent of salary for Tier II members (employees 
hired after November 1976). 

Other Positions 

The other Superior Court positions covered by this ordinance 
are as follows: 

Classification Current No. of Positions 

592 Payroll/Personnel Director 2 

648 Court Investigator 5 

649 Probate Examiner 3 
655 FCS Counselor 7 
678 Executive Secretary 2 

Total 19 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

The proposed ordinance includes the following provisions for 
the above-noted positions. 

Wage Increases 

Wages of the employee classifications listed above would 
receive a 1.75 percent salary increase on July 1, 1998, and an 
additional 1.5 percent increase on December 26, 1998. 

Retirement Pick-Up 

For the period July 1, 1998 through June 30, 1999, the City, 
on behalf of the Superior Court, would continue to "pick-up" 
the full employees' share of retirement contributions to the 
Employee Retirement System in the following percentages: 

8 percent of salary for Tier I members (employees 
hired prior to November 1976); and 

7.5 percent of salary for Tier II members (employees 
hired after November 1976). 

Overtime Pay or Compensatory Time 

If the employees of the above-noted classifications work in 

excess of 40 hours per week, these employees would continue 

to receive cash overtime at time and one-half unless an 

employee requests compensatory time off in lieu of cash 

payments. 

Word Processing Premium 

Employees who have received a word processing premium 
continuously from FY 1994-95 to the present would continue 
to receive a $0.91 per hour premium, which is the same rate 
as FY 1997-98. 

Fiscal Impact of Proposed Ordinance 

As of the writing of this report, the Controller's Office has not 
completed an analysis of the estimated cost of this ordinance. 
A report from the Controller on this matter will be submitted 
prior to the February 24. 1999 meeting of the Finance and 
Labor Committee. 

Comment: According to Mr. David Greenburg of the City Attorney's 

Office, the proposed ordinance has been submitted over eight 
months after the effective approval dates of July 1. 1998, 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

because the City Attorney's Office required additional time to 
study the implications of State Trial Court Funding and its 
impact on this ordinance, as this is the first full fiscal year of 
that funding. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

February 24. 1999 Finance and Labor Committee Meeting 

Item 8 - File 99-0195 



Department: 
Item: 



Superior Court. 

Ordinance implementing schedules of compensation and 
other economic benefits for certain classifications of 
persons employed by the Superior Court of California, 
Countv of San Francisco. 



Source of Funds: 



State Trial Court Agency Fund 



Description: 



With the exception of one position under Class 710 Court 
Reporter, the City will not be hable for any costs incurred 
in providing the wages and other benefits set forth in the 
ordinance since such costs have been assumed by the 
State (see Comment No. 1). The City continues to have 
responsibility for administering health and retirement 
benefits and payroll processing. 

The proposed ordinance, which has been approved by a 
majority of the judges of the Superior Court pursuant to 
Government Code Section 69900. establishes certain pay 
premiums and employee benefits for the one-year period 
retroactive from July 1, 1998, through June 30, 1999, for 
the following two classifications, covering approximately 
58 Superior Court employees: 



Classification 
0350 Court Reporter 
0710 Court Reporter 
Total 



Current No. of Filled Positions 
20 
38 
58 



The major fiscal provisions of the proposed ordinance are 
summarized as follows: 

Holidays 

Under the proposed ordinance, covered employees will 
receive four floating holidays annually, effective January 
1, 1999. This is an increase of two floating holidays over 
FY 1997-98. Henceforth, floating holidays will be granted 
and used on a calendar year basis. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

U9 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Health and Dental Care Benefits 



Under the proposed ordinance, the City, on behalf of the 
Court, will continue to contribute to covered employee 
health benefits at a level set annually in accordance with 
the requirements of Charter Appendix Sections A8.423 
and A8.428. The current level of health care benefits, 
$2,047.00 per employee on a yearly basis, will be 
maintained through FY 1998-99. 

Under the proposed ordinance, employees will, in 
addition, continue to receive $225.00 per month toward 
dependent health care benefits, retroactive to July 1, 
1998, and continuing for the duration of FY 1998-99. 

Under the proposed ordinance, employees will continue to 
receive the level of dental coverage for each member and 
family dependent provided in FY 1997-98, which is 
$887.00 per employee on a yearly basis. 

Retirement Pick-Up 

Under the proposed ordinance, for the period of July 1. 
1998, through June 30, 1999, the City will continue to 
"pick-up" the full employees' share of retirement 
contributions to the Employee Retirement System (ERS) 
in the following percentages: 

8 percent of salary for Tier I members (employees 
hired prior to November 1976); and 

7.5 percent of salary for Tier II members 
(employees hired after November 1976). 

Long Term Disability 

Under the proposed ordinance, the City will, on behalf of 
the Court, continue to provide to employees with six 
months continuous service, a Long Term Disability Plan 
that provides 60 percent of salary up to age 65 for 
employees with a long-term disability. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

50 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Real Time Reporting Compensation 

Under tbe proposed ordinance, any covered employee who 
has received "real time" certification (certification to 
perform instant, computer-aided transcription) and who is 
certified by his/her judge to be regularly required to 
provide, and does provide, "real time" reporting as a 
matter of course will continue to be paid a premium of 
2.75 percent of his or her bi-weekly gross pay. 

Bilingual or Sign Language Compensation 

Under the proposed ordinance, covered employees 
assigned to a designated bilingual or sign language 
position will continue to be granted an additional 
compensation of $50 bi-weekly. 

Fiscal Impact of Proposed Ordinance 

As of the writing of this report, the Controller's Office has 
not completed an analysis of the estimated cost of this 
ordinance. A report from the Controller on this matter 
will be submitted prior to the February 24, 1999, meeting 
of the Finance and Labor Committee. 

Comments: 1. According to Ms. Cheryl Martin of the Superior 

Court, provisions providing for funding by the City for one 
position under Class 710 Court Reporter were 
inadvertently omitted from the proposed ordinance. 
Therefore, the proposed ordinance should be amended to 
allow for this position to be funded by the City budget. 

2. According to Mr. David Greenburg of the City 
Attorney's Office, the proposed ordinance has been 
submitted over eight months after the effective approval 
dates of July 1, 1998, because the City Attorney's Office 
required additional time to study the implications of State 
Trial Court Funding and its impact on this ordinance, as 
this is the first full fiscal year of that funding. 

3. Although salary increases are not covered by the 
proposed ordinance, pursuant to Section 70050.5 of the 
State Government Code, the salaries of court reporters 
employed by the Superior Court are tied to those of Court 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Reporters in the County of Los Angeles. The court 
reporters will receive salary increases totaling 13 percent 
over the three years covered by an Agreement with the 
County of Los Angeles, according to the following 
schedule: 

Date Salary Increase 

7/1/98 2% 

1/1/99 3% 

7/1/99 2% 

1/1/00 2% 

7/1/00 2% 

1/1/01 2% 

Total 13% 

In addition, the Court Reporters may receive an 
additional increase of up to one percent, effective January 

1, 2000, if the Consumer Price Index for the twelve-month 
period ending September 30, 1999, exceeds three percent. 

Recommendation: 1. In accordance with Comment No. 1 above, amend the 

proposed ordinance by adding the following language to 
line 19 of page one of the proposed ordinance (at the end 
of paragraph III): 

"This paragraph shall not apply to the payment of wages 
and benefits for those positions covered by this ordinance 
which are specifically authorized and funded by the City 
budget." 

2. Approval of the proposed ordinance as amended is a 
policy decision for the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

52 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Items 9, 10 and 11 - Files 99-0197. 99-0200 and 99-0201 



Department: 
Items: 



Description: 



Mayor's Office of Public Finance 

File 99-0197: Resolution amending prior Resolution 
No. 1027-97 tbat, among otber matters, authorized 
and directed the sale of not to exceed $17,000,000 
City and County of San Francisco General 
Obligation Bonds (Educational Facilities Bonds, 
1997-San Francisco Community College District), 
Series 1998B; by changing the maximum dollar 
amount authorized and directed to be sold; and bj r 
extending the final maturity date for such bonds. 

File 99-0200: Resolution amending prior Resolution 
No. 149-98 that, among other matters, authorized 
and directed the sale of not to exceed $47,000,000 
City and County of San Francisco General 
Obligation Bonds (Educational Facilities Bonds, 
1997- San Francisco Unified School District), Series 
1998C; by changing the maximum dollar amount 
authorized and directed to be sold; and by 
extending the final maturity date for such bonds. 

File 99-0201: Resolution amending prior Resolution 
No. 678-98 that, among other matters, authorized 
and directed the sale of not to exceed $11,000,000 
City and County of San Francisco General 
Obligation Bonds (Zoo Facilities Bonds, 1997), 
Series 1998D; by changing the maximum dollar 
amount authorized and directed to be sold; and by 
extending the final maturity date for such bonds. 

On June 3, 1997, the San Francisco voters 
approved the issuance of (1) $140 million in 
General Obligation Bonds to fund the acquisition, 
construction and/or reconstruction of educational 
facilities including $50 million for the Communitj' 
College District and $90 million for the San 
Francisco Unified School District and (2) $48 
million in General Obligation Bonds to fund the 
acquisition, construction and/or reconstruction of 
facilities for the San Francisco Zoo. On November 
10, 1997, the Board of Supervisors approved the 
issuance of an initial series of bonds for the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



53 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Community College District in an amount not to 
exceed $17 million (Resolution No. 1027-97). On 
March 2, 1998, the Board of Supervisors approved 
the issuance of an initial series of bonds for the San 
Francisco Unified School District in an amount not 
to exceed $47 million (Resolution No. 149-98). On 
August 17, 1998, the Board of Supervisors 
approved the issuance of an initial series of bonds 
for the San Francisco Zoo in an amount not to 
exceed $11 million (Resolution No. 678-98). 

The proposed resolutions would authorize an 
increase in the amount of these initial 
authorizations and extend the maturity dates of 
these General Obligation Bonds previously- 
approved by the Board of Supervisors for the 
Community College District, the San Francisco 
Unified School District and the San Francisco Zoo. 
Under the proposed resolution (File 99-0197), the 
initial issuance authorization for the Community 
College District would increase from an amount not 
to exceed $17 million to an amount not to exceed 
$23 million, an increase of $6 million, or 35 
percent. Under the proposed resolution (File 99- 
0200), the initial issuance authorization for the San 
Francisco Unified School District would increase 
from an amount not to exceed $47 million to an 
amount not to exceed $64 million, an increase of 
$17 million, or 36 percent. Under the proposed 
resolution (File 99-0201), the initial issuance 
authorization for the San Francisco Zoo would 
increase from an amount not to exceed $11 million 
to an amount not to exceed $18 million, an increase 
of $7 million, or 64 percent. Under all three 
proposed resolutions, the final maturity date would 
be extended from June 30, 2025 to June 30, 2026, 
one additional year. 

Budget: Community College District (File 99-0197) 

Project Fund S2 1,000,000 

Costs of Issuance 120,000 

Underwriter's Discount 160.000 

Total $21,280,000 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

54 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Proceeds from tbis bond sale would be used to 
acquire property to be used for campuses for tbe 
Community College District in tbe Chinatown and 
the Mission districts, health and safety- upgrades, 
renovation projects and technology and electrical 
upgrades. Attachment 1 provided by the 
Community College District provides a detailed 
breakdown of the project expenditures of 
511,231,239 that have been incurred through 
February 18, 1999 and the projected costs of 
$9,081,986 that are estimated to be incurred over 
approximately the next year, for a total estimated 
project cost of $20,313,225. 

San Francisco Unified School District (File 99-0200) 

Project Fund $60,287,000 

Costs of Issuance 120,000 

Underwriter's Discount 458.000 

Total $60,865,000 

Proceeds from this bond sale would be used for new 
school construction at six sites, modernization of 
high school and middle school science laboratories, 
upgrades of the Children's Center and technology 
and electrical infrastructure. Attachment 2 provided 
by the Unified School District provides a detailed 
breakdown of the project costs of $60,287,000. 

San Francisco Zoo (File 99-0201) 

Project Fund $16,780,000 

Costs of Issuance 120,000 

Underwriter's Discount 130.000 

Total $17,030,000 

Proceeds from this bond sale would be used for 
design costs for a new Entry to the Zoo, including a 
new Zoo Street and the Madagascar and Africa 
exhibits, and for design and construction costs for the 
Educational Facility, Animal Resource Center, Zoo 
Support Facilities, Administration Facilities, 
Children's Zoo, Quarantine and Holding Facilities, 
Public Art Program, and repair and replacement 
costs. Attachment 3 provided by the San Francisco 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

55 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Zoo provides a detailed breakdown of the project 
costs of $16,780,000. 

Comments: 1. According to Ms. Laura Opsahl of the Mayor's 

Office of Public Finance, these bonds were 
originally anticipated to be issued during the 
Spring of 1998. However, Mr. David Sanchez of the 
City Attorney's Office reports that because of 
litigation pending on the San Francisco 49er 
Stadium Bonds (Proposition D) which were placed 
on the same June 3, 1997 ballot, bond counsel will 
not issue a final opinion that the Community 
College District bonds, the Unified School District 
bonds and the Zoo bonds are valid. Therefore, the 
issuance of the bonds for the Community College 
and Unified School Districts and the Zoo have been 
delayed. 

2. Mr. Sanchez reports that, if the proposed 
resolutions are approved, the City will file a 
validation action with the Courts. This validation 
action would establish the validity of the 
Community College District, Unified School 
District and Zoo bonds to be issued. According to 
Mr. Sanchez, the bonds could be sold 30 days after 
the judgement by the Court, which is expected to 
take 60 days from the date the validation action is 
filed. Mr. Sanchez notes that the proposed 
legislation, which authorizes the selling of the 
bonds, is required to file the proposed validation 
action with the Court. 

3. As a result of the delay in the issuance of the 
bonds, Ms Opsahl reports that each of the entities 
has requested additional bond funds be issued to 
cover their project costs for an additional year, or 
through the Spring of 2000. Ms. Opsahl reports 
that she anticipates the issuance of these bonds to 
occur during the Spring or Summer of 1999, 
approximately one year later than originally 
anticipated. Ms. Opsahl notes that to provide for 
the possibility of further delays in the issuance of 
the bonds, the Mayor's Office has included a 
contingency of approximately five to eight percent 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



over tbe amount of project funds requested for each 
of the three bond issuances in the proposed request. 

4. As contained in the proposed resolutions, all of 
the bonds would be sold at an interest rate not to 
exceed 12 percent per year. Given current market 
conditions, Ms. Opsahl estimates that (1) the bonds 
will have a final maturity date of 2019, or 20 years, 
(2) the overall effective interest rate on these bonds 
will be approximately 5.846 percent and (3) the 
average interest rate will be 5.811 percent over the 
20 -year term. 

5. Given Ms. Opsahl's estimated interest rates, Ms. 
Opsahl reports that the Community College 
District proposed bond sale of $21,280,000 would 
result in total debt service of approximately 
$36,626,602 over the life of the bonds. Over the 20- 
year life of the bonds, the average debt service 
payment per year for these Community College 
District Bonds would be $1,820,207. The San 
Francisco Unified School District's proposed bond 
sale of $60,865,000 would result in total debt 
service of approximately $104,746,597 over the life 
of the bonds. Over the 20-year life of the bonds, the 
average debt service payment per year for these 
San Francisco Unified School District Bonds would 
be $5,205,518. The San Francisco Zoo's proposed 
bond sale of $17,030,000 would result in total debt 
service of approximately $29,306,644 over the life 
of the bonds. Over the 20-year life of the bonds, the 
average debt service payment per year for these 
San Francisco Zoo Bonds would be $1,456,431. 

6. According to Mr. John Madden of the Controller's 
Office, the proposed total General Obligation Bond 
sale of $105,000,000 ($23,000,000 for the 
Community College District, $64,000,000 for the 
Unified School District and $18,000,000 for the 
Zoo) would result in an increase in the Property 
Tax rate of approximately $.0149. At that rate, the 
owner of a single family residence assessed at 
$400,000 would pay $59 in additional Property 
Taxes annually due to the issuance of these bonds. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



7. All future expenditure appropriations from the 
three proposed bond sales, including the bond 
issuance costs, would be subject to separate 
appropriation approval by the Board of 
Supervisors. 



Recommendation: Approve the proposed resolutions. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



LO Jj23 XcL- <4 I 



rtUIUINi S I KH I 1UIN 



GENERAL OBLIGATION BOND 

PROJECT EXPENDITURES 

AS OF 2/18799 



*J.w> ^41 iiO^M 



Attachment 1 
i^age l or J 





HSSE 


ifi'ilBi ij£T"Hi >a " ,J ,£r Pr 




$!» 


iisiSgglS^KagKBi 


rKlj^Hi:^''^ 


*HIBlfeSai5 


Bond Projects: 
















Health and Safety 








- 








Phelan: 
















BSOO-Replacement Fac S 


61.946 






$ 


563,730 


$ 


625,676 


Conlan Hall $ 


14,477 






S 


47,405 


S 


61.882 


Library 








$ 


63,546 


$ 


63,546 


Creative Arts 








$ 


45,682 


$ 


45,682 


Cloud Hall 








$ 


14,700 


s 


14.700 


General Infrastructure 








$ 


362.690 


$ 


362.690 


South Res. $ 


6.207 










s 


6,207 


John Adams S 


5,901 






s 


13,326 


s 


19.827 


Downtown 




S 


1,240 


% 


3,270 


$ 


4.510 


Alemany 

Total Hearth and Safety 


















$ 


eg. 531 


$ 


1,240 


$ 


1,114,949 $ 


$ 


1,204,720 


Facility Renovation 
















Phelan: 
















BSOO-Replacement Fac 








$ 


558,244 


$ 


558.244 


Conlan Hall 








s 


84.383 


$ 


84.383 


Library $ 


2.432 






$ 


16,860 


$ 


19.292 


Smith Hall $ 


2.250 










s 


2,250 


General Infrastructure 








5 


298.535 


s 


298,585 


John Adams $ 


454 










$ 


454 


Downtown $ 


3.615 










$ 


3,615 


Alemany 

Total Facility Renovation 


















5 


8,751 


s 


- 


$ 


958,072 S 


$ 


960,823 



59 



tO-lO-1333 l£-<ir 



HiiniNIblKaTION 

GENERAL OBLIGATION BOND 

PROJECT EXPENDITURES 

AS OF 2/18/99 



415 2<l 2344 P.e2 



Attachment 1 
^age I or 3 ' 



Technology 
Phelan: 

B600-Raplacement Fac 

Conlan Hall 

Library 

General Infrastructure 
John Adams 
Downtown 
Alemany 

Total Technology 



32SSS 



\3&'i?^r>£?Z&£3?S\ 



13.045 



14.638 S 



$ 6.592 

$ 761.186 






10.365 



794.231 



B04.616 



*Childcare 

•ADA 

Land Acquisition 

Chinatown/NB 
Mission 
Total Land Acquisition 

Bond Administration 

Summary 



383.225 
145.178 



$ 5.671.071 S 6.054.296 
J 1.940.183 $ 2,085.361 



s 


528,403 $ 


S 


S 7,611,254 $ 


8,139,657 




$ 


115,423 


1 


115.423 


$ 


640.523 $ 


116,663 S 


2,862.799 $ 7,611.254 $ 


11,231.239 



'Project* n»v» not «-j-t»o 



TOTAL P.B2 



60 



2-1E-S9 U4:tt rn. 



Page 3 of 3 



CITY COLLEGE 

PROPOSITION A FIRST BOND SALE 

FUTURE SPENDING PLAN 



Project 
Category 


Campus Name 


Project Location 


First Sale 


Total 


Technology / Network 










Alcmany 


Alemany 


76,837 






John Adams 


John Adams 


263,697 






Phelan 


North Gym 


87,412 






Phelan 


Science Hall 


334,693 






Phelan 


South Gym 


102.734 






Phelan 


Campus Infratructure 


1,500,000 






Totals 




2.365,374 


$ 2.365,374 












Technology / Electrical 










Alcmany 


Alemany 


100,403 






John Adams 


John Adams 


312,544 






Phelan 


North Gym 


40,487 






Phelan 


Science Hall 


289.453 






Phelan 


South Gym 


49,658 






Phelan 


Campus Infratructure 


1,500.000 






Totals 




. 2,292444 


$ 2,292.544 


Health / Safe 


1 










Alemany 


Alemany 


802,548 






John Adams 


John Adams 


1,377,847 







Phelan 


North Gym 


111,148 




Phelan 


Science Hall 


155.704 






Phelan 


South Gym 


67,726 






Totals 




2.514,973 


$ 2,514.973 












Facility Rene 


vation 










Alemany 


Alemany 


100.112 






John Adams 


John Adams 


287,943 




ADA Upgrac 
BONDPRO< 


Phelan 
Phelan 

Phelan 

Totals 


North Gym 
Science Hall 
South Gym 


390,932 

310,507" 

" 410,571 

1.649377 

185.7TF 
"74.001 


""$ 1,649.377 


e ~_ 
Alcmany 
John Adams 

sraIvTtotals 


Alemany 
John Adams 




259,719 


_$ 259.719 

1 $ 9MIM6 



61 



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64 



Februarv 3. 1999 




Actacnment J 



VIA FAX 

(415) 554^1864 



Ms. Laura Opsahl 

Debt Administrator 

Mayor's Office of Finance &. Legislative Affairs 

City & County of San Francisco 

One Carlton B. Goodlett Place 

San Francisco, CA 94102 

RE: Revised Bond Sale Request 

Phase II Master Plan Project — San Francisco Zoological Society 

Dear Ms. Opsahl: 

In response to your request, we have prepared a revised bond sale amount based on the Zoo's current 
schedule (Attachment K), Division of Capital and Bond Monies (Attachment I), and Projected Cash Flow 
(Attachment G). 

Attachments G, I and K are updates to the Project Information Worksheets that we submitted in July 
1998. Descriptions of the projects remain as previously submitted 

In the request, we have included project design and construction costs for projects where we anticipate the 
award of construction prior to March 31, 2000, and design costs related to projects which will be 
continuing in design after March 31, 2000. In all cases, we have only requested the portion of costs 
which will be funded through the bond sales. 

This revised bond sale request is for SI 6.900.000 on the following projects: 



Name 

Education Facility 
Animal Resource Center 
Zoo Support Facilities 
Administration Facilities 
Children's Zoo 1 
Quarantine & Holding 
Public Art Program 
Repair & Replacement 
Entry & Zoo Street 1 
Madagascar 
Africa! 

Bond Sale Est. Issuance Cost 



Project Phase 

Design & Construction 

Design & Construction 

Design & Construction 

Design & Construction 

Design & Construction 

Design &. Construction 

Design &. Construction 

Design & Construction 

Design 

Design 

Design 

Subtotal: 

Total: 



Project Total 

S2.600.000 
$2,380,000 
$3,200,000 
$2,400,000 
S2.6 10,000 
$3,340,003 
$800,000 
$2,690,000 

$13,180,000 
$3,810,000 
$9.060.000 

S46.070.000 
N/A 

$46,070,000 



Bond Funds 

$2,420,000 

$1,990,000 

$2,980,000 

$2,240,000 

$2,090,000 

$2,670,000 

$800,000 

$340,000 

$870,000 

$110,000 

$270.000 

$16,780,000 

$120.000 

$16,900,000 



Capital Campaign 

$180,000 

$390,000 

$220,000 

$160,000 

$520,000 

$670,000 

N/A 

S2,350,000 

$940,000 

$440,000 

$1.040.000 

$6,910,000 

N/A 

$6,910,000 



The San Francisco Zoological Society 

1 Zoo Road 

San Francisco, CA 94132-1098 

(415) 75.V7080 
Fax (415) 681-1039 gc 



Memo to the Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Item 12 - File 99-2149 



Department: Department of Administrative Services (DAS) 

Item: Hearing to consider a request submitted by Walt Disney 

Corporation to film a segment of a movie (film shoot) at 
the Board of Supervisors Chambers during either the last 
week of April or the second week of June, 1999. 

Location Property: Board of Supervisors Chambers at City Hall 



Rent Payable to the 
City by Walt Disney: 



Description: 



Comments: 



$300 per day to the Film Commission as a permit fee. 
$5,000 per day for the use of the Chambers, which was 
negotiated by Ms. Kerry Painter, Building Manager for 
City Hall. According to Mr. Steve Nelson of the DAS, the 
rental paj^ments accrue to the Department of 
Administrative Services for offsetting the costs of general 
clean-up and building/regtroom maintenance of City Hall. 
Mr. Nelson estimates that the rental revenues to be 
received from the Walt Disney Corporation will not 
exceed such rental revenues which have already been 
appropriated in the FY 1998-1999 budget. 

On December 14, 1998, the Walt Disney Corporation 
submitted a request to Ms. Gloria Young, Clerk of the 
Board, to conduct a film shoot at the Board of Supervisors 
Chambers at City Hall. 

The film shoot would be conducted each day during a 
consecutive five-day period and only during the hours 
when the Board of Supervisors is not using the Chambers. 

According to Ms. Painter, the Walt Disney Corporation is 
required to have security personnel and one engineer with 
the film crew at all times during the film shoot. Ms. 
Young states that the Walt Disney Corporation would be 
required to post surety bonds for the protection of City 
property. Ms. Young reports that the details of such 
bonds have not yet been finalized. 

1. Requests to utilize the Board of Supervisors Chambers 
for the purpose of filming movies can only be approved by 
the Board of Supervisors, according to Mr. Nelson. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

66 



Memo to the Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



2. Mr. Buck Delventhal of the City Attorney's Office 
states that the Board of Supervisors must approve all fees 
charged by City departments in accordance with the 1996 
Charter, but that the applicable fee schedule has not yet 
been submitted to the Board of Supervisors. Mr. 
Delventhal explains that, in the absence of an established 
fee schedule, the fees to be charged to the Walt Disney 
Corporation could be included in a motion, subject the 
Board of Supervisors approval. 

3. Mr. Lakey advised that the use of the Board of 
Supervisors Chambers by the Walt Disney Corporation 
would require a motion to be approved by the Board of 
Supervisors. As of the writing of this report, the Budget 
Analyst has not been provided with such motion to be 
acted on by the Board of Supervisors, for either approval 
of the fees noted above, or approval for the Walt Disney 
Corporation to use the Board of Supervisors Chambers. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

67 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Item 13 - File 99-0092 



Item: Ordinance amending Chapter 45, Sections 45.1 through 

45.3 of the Administrative Code to increase the fees paid 
to Grand Jurors and to delete obsolete provisions 
concerning payment of trial jurors fees. 

Description: The proposed ordinance would amend Sections 45.1 

through 45.3 of the Administrative Code relating to grand 
jury fees and trial juror fees. 

Grand Jury Fees 

There are two grand juries, one for criminal indictments 
and one for civil investigations. Civil and criminal grand 
juries each consist of 19 members. Civil grand jurors are 
appointed for one year terms. Criminal grand jurors are 
appointed for four month terms, and new criminal grand 
juries are selected every four months. As such, there are 
civil and criminal grand juries in session throughout the 
entire year. Civil grand jury members conduct regular 
meetings up to once per week (four times per month) and 
must also attend a number of committee meetings each 
month. Criminal grand jurors may hold regular meetings 
up to three times per week (12 times per month). Mr. 
Gary Giubbini of the Trail Courts states that the 
frequency of meetings for both civil and criminal grand 
juries varies depending on the case work. 

Section 45.2 of the Administrative Code requires that 
grand jurors receive $11 per meeting for attending 
regular civil or criminal grand jury meetings. In addition, 
grand jurors are compensated for up to four committee 
meetings per month at $11 per meeting. The existing fee 
of $11 per meeting has been in effect since 1984. 

Under the proposed ordinance, civil and criminal grand 
jurors would receive an increase in the fee paid for both 
regular grand jury meetings and committee meetings 
from $11 to $15 per meeting, or an increase of $4 per 
meeting (36.4 percent). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

68 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Trial Juror Fees 

Section 45.3 of the Administrative Code states that jurors 
participating in civil or criminal trials in the Superior and 
Municipal Courts shall receive a) a fee of $10 per day, 
and b) reimbursement for travel at the rate of $1.50 for 
every 10 miles or fraction thereof for travel to and from 
the court. 

The proposed ordinance would delete Section 45.3 since, 
according to Mr. Neal Taniguchi of the Trial Courts, 
under the State Trial Court Funding Act of 1997, trial 
juror fees and travel reimbursement are now the 
responsibility of the State Judicial Council. 

Title 

Lastly, the proposed ordinance would amend Section 45.1 
to change the title of Chapter 45 from the "Jury Fees 
Ordinance" to the "Grand Jury Fees Ordinance." 

Comments: 1. The proposed increase of $4 in grand juror fees would 

increase the annual grand juror expenditures from 
$50,160 to $68,400 or by $18,240 (36.4 percent). 

The table on the following page shows a breakdown of 
annual expenditures based on the current and proposed 
grand juror fees. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

69 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



Civil Grand Jury 
Regular Meetings 
(4 meetings/mo. x 
12 mos./yr. x 19 jurors) 

Committee Meetings 

(4 meetings/mo. x 

12 mos./yr. x 19 jurors) 



Criminal Grand Jury 
Regular Meetings 
(12 meetings/mo. x 
12 mos./yr. x 19 jurors) 

Total 



Recommendations: 



Annual Expenditures 
Based on Current Fee 
Of Sll/meeting 



$10,032 



10.032 



Total-Civil Grand Jury $20,064 



$30.096 



$50,160 



Annual Expenditures 
Based on Proposed Fee 
Of $15/meeting 



$13,680 



13.680 



$27,360 



$41.040 



$68,400 



Increase 



$3,648 



3.648 



$7,296 



$10.944 



$18,240 



Mr. Taniguchi states that the increased expenditures 
related to the proposed increase in grand juror fees, which 
would become effective on March 8, 1999, would be 
absorbed in FY 1998-99 under the existing Trial Courts' 
FY 1998-99 budget. 

1. Approve the proposed amendment to Section 45.1 of the 
Administrative Code to change the title of Chapter 45 
from "Jury Fees Ordinance" to "Grand Jury Fees 
Ordinance." 



2. Approve the proposed amendment to delete Section 
45.3 of the Administrative Code in order to delete 
references to fees and travel reimbursements for trial 
jurors, since such fees and travel reimbursements are now 
the responsibility of the State Judicial Council. 

3. Approval of the proposed amendment to Section 45.2 
of the Administrative Code, which would increase Grand 
Jury Fees by $4 per meeting, is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



70 



Memo to Finance .and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Item 14 - File 98-1935 



Department: 



Item: 



Description: 



Department of Parking and Traffic (DPT) 
Department of Real Estate (DRE) 

Ordinance to amend Section 17.11 of Chapter 17, Article 
II of Part I of the Administrative Code in regard to 
awarding leases and management agreements for the 
operation of City-owned parking facilities: (1) to 
eliminate the requirement that the Board of Supervisors, 
by ordinance, must first approve the bid documents as 
well as authorize the Director of Property to conduct the 
competitive bidding process; and (2) to eliminate the 
requirement to conduct the formal competitive bidding 
process currently set forth in Section 17.11 under which 
all such agreements must be awarded to the highest 
bidder in the case of a lease or to the lowest bidder in the 
case of a management agreement when the Parking and 
Traffic Commission deems such a formal competitive 
bidding process to be "impractical or impossible" and "not 
in the best interests of the people," and to replace the 
established formal competitive bidding process with a 
Request for Proposals or Request for Qualifications 
process developed by the Director of Property and the 
Department of Parking and Traffic (DPT). 

The DPT and the Parking Authority have jurisdiction 
over 18 parking garages and 23 parking lots in the City. 

Changing the Process of Awarding Contracts 

According to Mr. Ronald Szeto of the DPT, the current 
process of awarding leases and management agreements 
to private parking facility operators requires approval of 
two types of legislation by the Board of Supervisors. 
First, the Board of Supervisors must, by ordinance, 
approve bid documents related to the award of such 
contracts as well as authorize the Director of Property to 
issue an Invitation for Bid. Second, the Board of 
Supervisors must, by resolution, approve the contract 
awarded to the highest bidder in the case of a lease or the 
lowest bidder in the case of a management agreement. 
According to Mr. Szeto, this two-part process for obtaining 






Board of Supervisors 
Budget Analyst 

71 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



approval of an award by the Board of Supervisors 
generally takes six months. 

Mr. Szeto states that the proposed ordinance would 
expedite this process by two months, by removing the first 
requirement that the Board of Supervisors must approve 
the bid documents to be used for issuing Invitations for 
Bids and must authorize the issuance of the Invitation for 
Bids. Currently, the Board of Supervisors may revise the 
bid documents submitted by the DPT prior to approving 
or rejecting them by ordinance. According to Mr. Szeto, 
under the proposed amendments, the DPT would continue 
to use such bid documents that have been approved by the 
Board of Supervisors in the past, but that modifications to 
the bid documents, after review and approval by a Deputy 
City Attorney, would be able to be made by the DPT 
without obtaining approval from the Board of 
Supervisors. 

The actual award of each lease or management agreement 
to designated parking operator firms for the operation of 
City-owned parking facilities would continue to be subject 
to approval by the Board of Supervisors. 

Changing Competitive Bidding Requirements 

Mr. Gerald Romani of the Department of Real Estate 
(DRE) and Mr. Szeto state that the competitive bidding 
process currently described in Section 17.11 permits the 
award for leases and management agreements only to the 
highest bidder in the case of leases or the lowest bidder in 
the case of a management agreement. 

Under the proposed ordinance, awards would be made 
through a "competitive process developed and 
implemented by the Director of Property and the 
Executive Director of the Department of Parking and 
Traffic" through the utilization of a Request for Proposals 
(RFP) or a Request for Qualifications (RFQ) process. 

Formal competitive bidding procedures would not be 
utilized if the Parking and Traffic Commission 
determined that such "a competitive process" "would be 
impractical or impossible and would not be in the best 

Board of Supervisors 
Budget Analyst 

72 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

interests of the public." Mr. Szeto stated that in such 
circumstances, the DPT would use an RFP or an RFQ 
process. Mr. Szeto further confirmed that the proposed 
amendment would permit the DPT to select parking 
operators on a sole-source basis subject to approval by the 
Board of Supervisors. 

Therefore, approval of the proposed amendment would 
enable the DPT to issue RFPs or RFQs, in lieu of the 
formal competitive bidding process that is currently 
prescribed in Section 17.11, for awarding leases and 
management agreements for parking facility operations, 
and enable the DPT to recommend sole-source awards. 

At the request of the Budget Analyst, Attachment I 
provided by Mr. Szeto and Mr. Romani, describes four 
prior specific instances which they believe clearly 
demonstrate that the formal competitive bidding process 
was impractical or impossible. However, in each of those 
instances, the lease or management agreement was, in 
fact, awarded through a formal competitive bidding 
process. 

Attachment II provided by Mr. Szeto describes each of the 
specific criteria, besides monetary considerations, that the 
DPT would use to evaluate potential operators if the DPT 
were able to issue RFPs and RFQs, in lieu of using the 
currently required formal competitive bidding procedures 
to award leases and management agreements to operate 
the parking facilities under the jurisdiction of the DPT 
and the Parking Authority. 

Comments: - 1. As previously noted, according to Mr. Szeto, the 

current process of awarding leases and management 
agreements generally takes six months. Mr. Szeto 
estimates that by eliminating the requirement that the 
Board of Supervisors must approve the bid documents 
prior to authorization to begin the competitive bid 
process, the entire process can be reduced by two months 
under the proposed ordinance. 

2. According to Mr. Romani, the current bidding process 
requires that awards be made solely based on the amount 
of the bids presented by operators, after specific 

Board of Supervisors 
Budget Analyst 

73 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

qualifications established by the DPT are met. However, 
Mr. Szeto states that through the use of RFPs and RFQs, 
the DPT would receive additional information from 
potential operators as to the quality of service and the 
management proposed to be provided. The Budget 
Analyst notes that nothing whatsoever precludes the DPT 
from obtaining such additional information under the 
presently required formal competitive bidding procedures, 
which, under the current provisions of the Administrative 
Code, require the award of such contracts to "responsive 
and responsible" bidders. 

Also, with regard to the examples of problems related to 
the use of competitive bids cited by DPT in Attachment I, 
the Budget Analyst believes that any such problems could 
have been resolved through the preparation of detailed 
bid specifications and contract performance standards. 

Lastly, in Attachment II, the DPT provides criteria that 
would be employed to evaluate proposals in response to a 
RFP or RFQ. The Budget Analyst notes that fees count 
for one tenth (10 points out of 100 total points) of the 
suggested rating system. Such a criteria would therefore 
allow for minimal consideration of the City's financial 
benefit in making contract awards. 

Recommendations: 1. We consider the elimination of the requirement that the 
Board of Supervisors approve of bid documents related to 
the award of agreements to parking operator firms of City- 
owned parking facilities to be a policy matter for the Board 
of Supervisors. 

2. However, the Budget Analyst has not been presented 
with compelling evidence to show that it would be more 
beneficial financially for the City to permit the DPT to 
waive the formal competitive bidding process established in 
Section 17.11 of the Administrative Code, and/or enable the 
DPT to recommend sole-source awards, particularly when 
any additional information which the DPT states it would 
obtain using an RFP or RFQ process could, in fact, also be 
obtained under a formal competitive bidding process. 



Board of Supervisors 
Budget Analyst 

74 



■19'99(FRl] 14:54 CITY k CO OF S. F. PARKING DEPT TEL:415 554 98o4 



r. uuz 



Page 1 of 2 



1. Performing Am Garage Sid dates-8/23/96 and 12/4/96 

Initially a bid opening was held on 8/23/96 for award of a management agreement with a 
fee based upon a percentage of the gross parking revenues less the parking taxes. Whh 
the numerous, significant renovation/construction projects either underway or proposed 
to begin in the Civic Center area (City Hall, Courts Building, Opera House, State 
building and Asian Art Museum), the relocation of employees and patrons of the arts 
would reduce the garage revenues. In addition, a City-vehicle motor pool was proposed 
for the garage which could impact up ta 81 of the 612 spaces. As a result, bids ranging 
from 3.45% to 64.5%, which could not begin to cover the operating expenses, were 
received with the then current operator bidding the highest Since the three low bids 
ranged from 3.45% to 15.9% and such a wide range in bids existed, the Parking Authority 
Commission followed the staff recommendation by rejecting all bids. This required a 
rebid which took place on 12/4/96. Due to these various factors an RFP vs. a competitive 
bid would have been beneficial and prevented duplication of staff efforts in the rebid. 

2. San Francisco General Hospital Medical Center Parking System Bid dates-3/12/96 
and 5/27/98 

With the completion of the new parking garage at SFGH approaching, a management 
agreement to operate the parking system (the "System"), consisting of 1701 System 
parking spaces (807-garage, 658-campus and 236-street), was developed. Because of the 
complexity of the System with its size, 24-hour operation, different type of parking 
categories, a required lottery to select the monthly parkers and sophisticated parking 
control/revenue equipment to develop revenue reports, parking utilization plans, etc., an 
RFP process would have provided the ability to exam a parking firm's experience and 
expertise to operate such a large, complex facility. Recognizing these problems and 
having to award the contract to the lowest bidder, the initial term of the contract was 
limited to 2 years. Upon expiration of the initial contract a new operator took over who 
was also awarded the contract through a competitive bid process. 

3- St. Marv's Square Garag e Bid date-2/6/97 

This 6-story, 825-space garage required extensive renovation including seismic retrofit 
resulting from damage sustained during the Loma Prieta earthquake. A S6M+ renovation 
project, which commenced in late July 1998, is near completion. Valet parking of 
vehicles is required during the majority of the garage's hours and resulted in gross 
revenues less parking taxes of S3.3M for the 1996-97 fiscal year. During the renovation 
project up to 50% of the garage area may be closed. Due to the high volume of vehicle* 
parked and the impact the renovation project would impose on the parking operation, an 
RFP process would allowed for better assessment of a parking operator's ability to 



75 



FEB. -19- 99 (FR1) 14:54 CITY I CO OF S. F. PARKING DEPT TEL-415 554 9834 P. 003 

ATTACHMENT I 
Page 2 ot i 

successfully operate this garage, especially during the trying times of the renovation 
project 

4. Civic Center Plaaa Ga rage Bid date-4/27/98 

The most recent bid for management of this garage illustrates problems that can be 
encountered in utilizing a competitive bid process instead of an RFP. Seven bids with 
monthly management fees ranging from $28,333 to 5S7.782 were received. Staff 
believed a management fee of $45K/mo. to be a realistic management fee to operate the 
garage at the minimum levels contained in the management agreement. A 
recommendation by staff to reject all bids was approved by both the Parking and Traffic 
Commission and the Board of Supervisors. The contract was extended with the current 
operator on a month to month basis through 12/3 1/99 to allow for time to evaluate the 
possible impacts on the garage that may result from a proposed Civic Center Plaza 
Historic District bond measure. 



rL'Jnxnaru/Aitachmmtl 2 

76 



EB. -19- 99(FR1) 14 = 55 CITY k CO OF S. F. PARKING DEPT TEL = 415 554 9834 



P. 004 



ATTACHMENT n 



Management Approach 

a) Understanding of the clientele, efficient 
garage utilization and required customer 
services to be performed 

b) Fee proposal 



10 points 
10 points 



20 points 



Aliened Management Staff 

a) Recent experience of staff assigned to the 
garage and a description of the duties to 
be performed by each staff person 

b) Professional qualifications and experience 
of manager and on-site supervisors 

c) Workload, staff availability and accessibility 
for additional services 



25 points 



15 points 
5 points 
5 points 



Experience of Firm and Sub-consultants 

a) Expertise of the firm and sub-consultants 
in the fields necessary to complete required 
tasks such as parking management, maintenance/ 
repair, janitorial services and security services 

b) Quality of recently managed parking facilities, 
including adherence to deposits, reports and 
budgets 

c) Experience with similar parking facilities 

d) Results of reference checks 



35 points 



15 points 

10 points 
5 points 
5 points 



Oral Tntervit 



20 points 



Total: 100 points 



«vtl\H\Jranujii\Anachracm n 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Item 15 - File 99-0091 

Note: This item was continued by the Finance and Labor Committee at its meeting 
of February 10, 1999. 



Department: 
Item: 



Description: 



Department of Public Works (DPW) 
Recreation and Park Department (RPD) 

Ordinance transferring jurisdiction over certain real 
property located at Drumm Street between Clay and 
Washington Streets, described generally as Assessor's 
Block 202, Lots 6, 14 and a portion of 15, excluding the 
subsurface rights thereof, and a portion of Assessor's 
Block 203, Lot 14, from the Department of Public Works 
to the Recreation and Park Commission; and providing 
that no building, improvement or structure may be 
constructed on the surfaces of such parcels and adjoining 
Assessor's Block 202, Lot 18. 

The proposed ordinance' would transfer jurisdiction over 
certain real property from DPW to RPD excluding the 
subsurface rights to a portion of the property. According 
to Mr. Joel Robinson of RPD, approval of this ordinance 
would preserve the property for use as open space subject 
to the possible construction of an underground parking 
facility on this property. The construction of an 
underground parking facility would require separate 
approval by the Board of Supervisors. 

On July 18, 1994, the City acquired from the State certain 
real property comprised of Assessor's Block 202, Lots 6, 14 
and portion of 15, and a portion of Assessor's Block 203, 
Lot 14 (collectively, the "Property"). The Property is 
located immediately northwest of Justin Herman Plaza, 
between the Embarcadero to the west and Davis Street to 
the east, and between Washington Street to the north and 
Clay Street to the south, as shown on the attached map. 
The Property is currently held under the jurisdiction of 
the Department of Public Works. The Recreation and 
Park Commission has jurisdiction over adjoining 
property, Assessor's Block 202, Lot 18 (Lot 18). The 
subject Property and the adjoining property are used as 
open space. 

The proposed ordinance would subject the Property and 
the adjoining Lot 18 to the restriction that no building, 
improvement or structure may be constructed on the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

78 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 



surfaces of the Property and Lot 18, provided that the 
following improvements would not be prohibited: (a) 
landscape improvements such as pedestrian pathways, 
gazebos, tables, benches lighting fixtures, trash 
receptacles, automatic public toilets, bicycle racks and 
drinking fountains, and (b) improvements necessary to 
the functioning of a potential underground parking 
facility if such improvements cannot be constructed 
underground. 

Jurisdiction over portions of the Property's subsurface, 
specifically Assessor's Block 202, Lots 6, 14, and a portion 
of 15, is to be retained by DPW because on September 18, 
1996, the Board of Supervisors preliminarily endorsed 
construction of an underground public parking facility 
with a capacity for up to 350 vehicles on this Property 
(File No. 47-96-8). This endorsement by the Board of 
Supervisors was subject to the condition that construction 
of an underground parking facility would not commence 
until the City executed a contract with a developer for a 
major renovation of the Ferry Building, located 
approximately 500 feet to the east of the Subject Property, 
across the Embarcadero. with the understanding, 
according to Mr. Alec Bash of the Port, that any such 
parking facility would serve the public needs associated 
with a renovated Ferry Building. According to the 
proposed ordinance, the Port is currently negotiating with 
a developer, William Wilson and Associates, for the 
renovation of the Ferry Building. 

On November 4, 1996, the Board of Supervisors approved 
the Final Environmental Impact Report for the 
Alternatives to Replacement of the Embarcadero Freeway 
and the Terminal Separator Structure, which set forth 
several surface traffic improvements, including the 
widening of Washington and Clay Streets between Davis 
and Drumm Streets, which would consist of certain 
improvements to a portion of Block 203, Lot 14 (File No. 
271-96-3). The proposed ordinance states that to "widen 
Washington and Clay Streets, the property line for 
Assessor's block 203, Lot 14 would be shifted 
approximately 17.40 feet to the south on the Washington 
Street frontage and approximately 17.61 feet to the north 
on the Clay Street frontage and two portions of Assessor's 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Block 203 (collectively tbe "Reserved Street Widening 
Parcels), will thereby be a part of the widened 
Washington and Clay Streets." 

Ms. Mariam Morley of the City Attorney's Office states 
that these Reserved Street Widening Parcels do not 
consist of that portion of Block 203, Lot 14 included in the 
Property proposed to be transferred from the jurisdiction 
of DPW to the jurisdiction of RPD. However, this proposed 
ordinance states "In the event that Washington and Clay 
streets are not widened within five years after the 
effective date of this Ordinance, the Director of Property 
shall recommend to the Board of Supervisors that, subject 
to the California Environmental Quality Act and other 
applicable laws, the jurisdiction of the Reserved Street 
Widening Parcels be transferred to the Recreation and 
Park Commission" and that the property comprising the 
Reserved Street Widening Parcels be subjected to the 
same development limitations as the subject Property. 
Therefore, according to Ms. Morley, the Reserved Street 
Widening Parcels, as land adjoining the subject Property 
described above, would serve as preserved open space in 
combination with the Property. 

Comment: As previously noted, the Property is currently used as 

open space. Mr. Robinson stated that RPD already 
provides gardeners to maintain the Property, excluding 
the portion of Assessor's Block 203, Lot 14, which is 
maintained by DPW. Mr. Robinson advises that RPD is 
not planning any improvements to the Property and 
therefore, Mr. Robinson anticipates no fiscal impact from 
the proposed jurisdictional transfer. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

80 




Memo to Finance and Labor Committee 

February 24, 1999 Finance and Labor Committee Meeting 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 

[arvey M. Rose 

cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

81 



02/01/1999 11:58 




82